Hope sustained a $3,600 casualty loss due to severe rainstorms classified as a federal disaster.She also incurred a $800 loss from a tornado also classified as a federal disaster in the same year.Both losses involved personal-use property.Hope's AGI for the year is $35,000 and she does not have insurance coverage.Hope's deductible casualty loss is

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Quizplus · Accepted Answer

For personal-use property, each casualty loss is reduced by $100, and the total is reduced by 10% of AGI. So, ($3,600 - $100) + ($800 - $100) = $4,200 - $3,500 (10% of $35,000) = $700.

Hope Sustained a $3,600 Casualty Loss Due to Severe Rainstorms