In the current year, Marcus reports the following casualty gains and losses on personal-use property. Assets X and Y are destroyed in the first casualty while Z is destroyed in a second casualty. As a result of these losses and insurance recoveries, Marcus must report

Question

In the current year, Marcus reports the following casualty gains and losses on personal-use property. Assets X and Y are destroyed in the first casualty while Z is destroyed in a second casualty.  As a result of these losses and insurance recoveries, Marcus must report

Quizplus · Accepted Answer

11eac5e3_b0a6_2d44_a396_25061e96e790_TB5639_00 If the netting process results in a net gain, each item is treated as a separate capital gain and loss. Thus, there is a $5,000 LTCG on Asset X; the $1,000 STCL on Asset Y is reduced by the $100 floor; the $300 STCL on Asset Z is reduced by the $100 floor.

In the Current Year, Marcus Reports the Following Casualty Gains