Reference no: EM131841365

Question - During 2011, someone broke into Jacobs personal residence and tool the following items:

Asset Adjusted FMV Before FMV After Insurance

Basis Recovery

Business Computer $12,000 $10,000 -0- $7,000

Bearer Bonds 30,000 32,000 -0- -0-

Silverware 7,000 10,000 -0- 2,000

Cash 8,000 8,000 -0- -0-

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowners insurance policy paid Jacob $7,000 for the stolen computer, Jacobs employer did not reimburse Jacob for any of the remainder of his loses. Jacobs AGI for the year, before considering any of the above items is $50,000.

Determine the total deduction for the stolen items on Jacob's 2011 tax return.