Nell records a personal casualty loss deduction of $14,500 for regular income tax purposes The loss was the result of a Federally-declared disaster.). The loss was computed as $26,600, but it was reduced by $100 and by $12,000 10% × $120,000 AGI). For AMT purposes, the casualty loss deduction also is $14,500.

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The AMT calculation does not limit the casualty loss deduction like the regular income tax calculation does, so the deduction remains the same at $14,500 for AMT purposes.

Nell Records a Personal Casualty Loss Deduction of $14,500 for Regular