What is the amount of the casualty loss on a business truck that had a fair market value of $14,000 before an accident and $4,000 after an accident,if its adjusted basis is zero?

Question

Quizplus · Accepted Answer

The casualty loss is the difference between the fair market value of the truck before and after the accident, which is $14,000 - $4,000 = $10,000. However, since the adjusted basis of the truck is zero, the casualty loss is reduced to zero.

What Is the Amount of the Casualty Loss on a Business