Taxpayer's home was destroyed by a storm in the current year and the area was declared a disaster area.If the taxpayer elects to treat the loss as having occurred in the prior year,it will still be subject to the 10%-of-AGI reduction based on the AGI of the current year.

Question

Quizplus · Accepted Answer

If the taxpayer elects to treat the loss as having occurred in the prior year, the 10%-of-AGI reduction will be based on the AGI of the prior year, not the current year.

Taxpayer's Home Was Destroyed by a Storm in the Current