Hope sustained a $3,600 casualty loss due to a 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 $25,000 and she does not have insurance coverage. Hope's deductible casualty loss is

Question

Quizplus · Accepted Answer

The deductible casualty loss is calculated by subtracting $100 per event and 10% of AGI from the total loss. Total loss is $3,600 + $800 = $4,400. Subtract $100 per event: $4,400 - $200 = $4,200. Subtract 10% of AGI: $4,200 - $2,500 = $1,700.

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