In 2014,Theo,an employee,had a salary of $30,000 and experienced the following losses: Determine the amount of Theo's itemized deduction from these losses.

Question

In 2014,Theo,an employee,had a salary of $30,000 and experienced the following losses:  Determine the amount of Theo's itemized deduction from these losses.

Quizplus · Accepted Answer

Salary $30,000
Rental loss (10,000)
Personal casualty gain $4,000
Personal casualty loss (4,000)-0-
AGI $20,000
The loss on the theft of the business computer is a miscellaneous itemized deduction which is subject to the 2%-of-AGI floor.
Loss on theft [$5,000 - (2% × $20,000)] $4,600
Casualty loss in excess of
casualty gain ($9,000 - $4,000)$5,000
Less: 10% × $20,000 (AGI)(2,000)3,000
Total itemized deduction $7,600

In 2014,Theo,an Employee,had a Salary of $30,000 and Experienced the Following