Constance,who is single,is in an automobile accident in 2016,and her car sustains $6,200 in damages.Constance does not expect to recover any of the loss from her insurance company.Constance's 2016 AGI is $31,000.Her casualty loss is $3,000;she has other itemized deductions of $1,200.In 2017,Constance's insurance company reimburses her $2,800.Constance's 2017 AGI is $28,000.As a result,Constance must
A) amend the 2017 return to show the $200 loss.
B) do nothing and simply keep the $2,800.
C) amend the 2016 return to show $0 loss and file her 2017 return to show $200 loss.
D) do nothing to the 2016 return but report $2,800 of income on her 2017 return.
Correct Answer:
Verified
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