Please advise on how to solve it. Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2020, which wasdeclared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The followingitems were completely destroyed and not salvageable:FMV JustPrior toDamage$ 7,2007,7501,000Original ItemCost (Basis)$ 5,60012,6503,550Damaged ItemsAntique poster bedPool tableFlat-screen TVRequired:Their homeowner's insurance policy had a $10,810 deductible for the personal property, which was deducted from their insurancereimbursement of $14,350, resulting in a net payment of $3,540. Their AGI for 2020 was $40,000. What is the amount of casualty lossthat Reynaldo and Sonya can claim on their joint return for 2020?Casualty loss deduction

Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2020, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: FMV Just Prior to Damage $ 7,200 Original Item Cost (Basis) $ 5,600 Damaged Items Antique poster bed Pool table Flat-screen TV 7,750 1,000 12,650 3,550 Required: Their homeowner's insurance policy had a $10,810 deductible for the personal property, which was deducted from their insurance reimbursement of $14,350, resulting in a net payment of $3,540. Their AGI for 2020 was $40,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2020?

Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2020, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: FMV Just Prior to Damage $ 7,200 Original Item Cost (Basis) $ 5,600 Damaged Items Antique poster bed Pool table Flat-screen TV 7,750 1,000 12,650 3,550 Required: Their homeowner's insurance policy had a $10,810 deductible for the personal property, which was deducted from their insurance reimbursement of $14,350, resulting in a net payment of $3,540. Their AGI for 2020 was $40,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2020?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter10: Protecting Your Property

Section: Chapter Questions

Problem 4FPE

See similar textbooks

Similar questions

Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV FMV Just Prior to Damage $ 7,000 7,625 950 Casualty loss deduction Original Item Cost (Basis) $ 5,500 12,375 3,375 Required: Their homeowner's insurance policy had a $10,675 deductible for the personal property, which was deducted from their insurance reimbursement of $14,075, resulting in a net payment of $3,400. Their AGI for 2021 was $39,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
Ivy Gordon's home in Charleston was recently gutted in a fire. Her living and dining rooms were destroyed completely, and the damaged personal property had a replacement price of $36,000. The average age of the damaged personal property was 5 years, and its useful life was estimated to be 13 years. What is the maximum amount the insurance company would pay Ivy, assuming that it reimburses losses on an actual cash-value basis and has a $500 deductible? Assume that the total coverage requirement is met. Do not round intermediate calculations. Round the answer to the nearest cent.
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2019, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items FMV Just Prior to Damage Original Item Cost (Basis) Antique poster bed $ 6,000 $ 5,000 Pool table 7,000 11,000 Flat-screen TV 700 2,500 Required: Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2019 was $50,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2019?
Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV FMV Just Prior Original Item Cost (Basis) $ 6,100 14,025 4,425 Casualty loss deduction to Damage $ 8,200 8,375 1,250 Required: Their homeowner's insurance policy had a $11,485 deductible for the personal property, which was deducted from their insurance reimbursement of $15,725, resulting in a net payment of $4,240. Their AGI for 2021 was $45,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?
A resident citizen acquired a property for use in his business. After a devastatingtyphoon, the machinery suffered partial damage. The following were made available:Cost P570,000Accumulated depreciation 300,000Restoration cost 300,000Estimated useful life 5 yearsThe taxpayer received insurance proceeds of P50,000 to cover the loss.Determine the amount of allowable deductions
Virginia has business property that is stolen and partially destroyed by the time it was recovered. She receives an insurance reimbursement of $6,000 on property that had a $14,000 basis and a decrease in market value of $10,000 due to damage caused by the theft. What is the amount of Virginia's casualty loss? $14,000 $8,000 $10,000 $4,000 None of the above
Casualty Losses. Tony is a carpenter who owns his own furniture manufacturing business. During the current year, a tornado (a federally declared disaster) damaged several pieces of equipment and destroyed his delivery truck and his personal automobile, which he often kept in the workshop garage. The asset descriptions and related values are as follows: Adjusted Insurance Basis FMV FMV Cost to Before Casualty After Casualty Repair/Replace $ 8,700 9,000 13,800 32,000 12,000 Asset Proceeds $ 9,000 3,000 15,300 17,500 28,000 $ 3,700 7,800 11,400 16,000 12,000 $4,000 Equipment A Equipment B Equipment C Delivery Truck Automobile $12,300 8,100 Not Available Not Available 18,000 15,000 Although he could not obtain its fair market value after the casualties, Tony decided to repair rather than replace Equipment C. Before considering any deductions because of these casualties, Tony's AGI is $80,000. What deductions may Tony take relating to these losses?
Rebecca Botson purchased a personal residence for $286,000. It had a fair market value of $300,000 in the current year when it was damaged by a flood that resulted in the entire area being declared a federal disaster area. The fair market value after the flood was $240,000 and insurance proceeds totaled $15,000. What is the net amount of federal casualty loss she can claim if her adjusted gross income is $120,000?
During the year, Mark had AGI of $30,000 and the following personal casualty losses related to a flood in a Federally declared disaster area: Asset Adjusted FMV Before FMV After Insurance Basis the Casualty the Casualty Recovery A $1,362 $2,139 $0 $487 B $1,648 $2,319 $439 $0 C $1,923 $2,987 $813 $561 How much can Mark deduct as a result of the personal casualty losses related to a flood? Group of answer choices $875 $587 $578 $785
A hurricane (federally declared disaster) destroyed the Palmer's boat. The couple purchased the boat for $30,000 ten years ago and it was appraised at a FMV of $35,000 before the hurricane. Unfortunately, the Palmers did not have insurance on their boat. Compute the Palmer's casualty loss deduction before applying the 10% AGI threshold? Question 35 Ms. Donor contributed $300.000 in cash to qualified charities this year during 2020. Her AGI was $275.000. How much is Ms. Donor's charitable contribution carry forward. if any. to 2021? (Ignore any temporary changes made to the charitable contribution rules for 2020 made by The Cares Act)
Carmen Viers lost everything to a fire and has spent the last eight weeks living in a motel room at a cost of $4 comma 7414,741. Her dwelling, which was destroyed as a result of a lightning strike, was insured with an HO-2 policy for $208 comma 336208,336. Prior to the loss, her home was valued at $255 comma 000255,000, her detached garage and poolhouse were valued at $29 comma 48629,486, and her personal property had an actual cash value of $85 comma 12185,121. To make matters worse she sustained $10,000 in injuries while trying without success to save her three Greyhound dogs valued at $6,000 each. How much of her total losses and expenses will be reimbursed if she has a $1,000 deductible? Question content area bottom Part 1 The amount of total losses and expenses she will be reimbursed if she has a $1,000 deductible is
Accounting In 2021 Ron and Hermione made the following contributions to the following organizations. Category Charity Property Cost FMV Goodwill Clothes and misc. household items (several years old) $25,700 $5,350 Hogwarts Museum Coin Collection $12,500 $30,900 Ron and Hermione’s best friends whose house burned down Cash $3,500 $3,500 Salvation Army Cash $15,700 $15,700 Toys for Tots New toys $6,500 $6,500 Henry Ford Hospital Rigor stock (held 3 years) $22,000 $10,000 Wayne State University Exxon Mobil Stock (held 5 years) $26,900 $69,500 High School Stock (held 6 months) 6,500 10,000 Wayne State University Cash 13,000 $13,000 Determine the contribution category for each of these contributions – assuming that the Hogwarts Museum plans to display the coin collection in the museum – and place in the column above. Determine Ron and Hermione’s maximum…