Carol had adjusted gross income of $40,000 in 2017. Late in the year she had an accident with her car and sustained a $1,000 loss, the amount of her insurance policy deductible. Her home was broken into and she had $15,000 of jewelry stolen (basis = $12,000); her insurance only covered $5,000 of this loss. What is her deductible loss?

Question

Quizplus · Accepted Answer

($1,000 - $100) + ($12,000 - $5,000 - $100) - ($40,000 x .10) = $3,800.

Carol Had Adjusted Gross Income of $40,000 in 2017