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 actual loss was $26,600, but it was reduced by $100 and by $12,000 (10% ×
$120,000 AGI) for regular tax purposes.For AMT purposes, the casualty loss deduction also is $14,500.

Question

Quizplus · Accepted Answer

For AMT purposes, the casualty loss deduction is not subject to the 10% of AGI limitation, so it remains at $14,500.

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