A taxpayer's home in California is destroyed by wildfires which have been declared a federal disaster.The home's destruction results in a large casualty loss deduction exceeding the taxpayer's income.The taxpayer will be allowed to carry forward a net operating loss due to this personal loss.

Question

Quizplus · Accepted Answer

This is true. The taxpayer can claim a casualty loss deduction and if it exceeds their income, they can carry forward the loss as a net operating loss.

A Taxpayer's Home in California Is Destroyed by Wildfires Which