Nell has a personal casualty loss deduction of $14,500 for regular income tax purposes.The deduction would have been $26,600,but it had to be reduced by $100 and by $12,000 (10% × $120,000 AGI).For AMT purposes,the casualty loss deduction also is $14,500.

Question

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The information provided states that for both regular income tax purposes and AMT purposes, the casualty loss deduction is $14,500. Therefore, the statement is true.

Nell Has a Personal Casualty Loss Deduction of $14,500 for Regular