Find norm deductible loss

Reference no: EM13142516

Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2009. The car's adjusted basis at the time of the accident was $13,000. Its fair market value was $11,500. The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,000 (before considering the loss). What is Norm's deductible loss?

A) $0.

B) $100.

C) $500.

D) $9,500.

E) None of the above.

Reference no: EM13142516

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