What is mikes net casualty and theft loss deduction

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Reference no: EM13215432

In May 2013, Mike's home was hit with a tornado. Mike's basis in the home was $125,000 and the tornado caused a loss of $18,000. He received a $10,000 insurance reimbursement.
In August 2013, Mike had a motorcycle accident. His basis in the motorcycle was $20,000 and the accident caused a $24,000 loss. Mike received a $5,000 insurance reimbursement.
a. If Mike's adjusted gross income in 2013 was $50,000, what is his net casualty and theft loss deduction?
b. Assume also that in November 2013 Mike's home was burglarized. Mike's antique music box collection held for investment was stolen. Mike's basis in the collection was $8,000 and it was worth $15,000 at the time it was stolen. Mike didn't insure the collection. If Mike's adjusted gross income in 2013 was $250,000, what is Mike's net casualty and theft loss deduction?

Reference no: EM13215432

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