Last year, Amos had AGI of $50,000. Amos also had a diamond ring stolen which cost $20,000 and was worth $17,000 at the time of the theft. He itemized deductions on last year's tax return. In the current year, Amos recovered $17,000 from the insurance company. Therefore, he must include $11,900 in gross income on the tax return for the current year.

Question

Quizplus · Accepted Answer

The insurance recovery is included in gross income because Amos itemized deductions on his last year's tax return.

Last Year, Amos Had AGI of $50,000