Alma is in the business of dairy farming.During the year, one of her barns was completely destroyed by fire.The adjusted basis of the barn was $90,000.The fair market value of the barn before the fire was $75,000.The barn was insured for 95% of its fair market value, and Alma recovered this amount under the insurance policy.She has adjusted gross income of $40,000 for the year (before considering the casualty).Determine the amount of loss she can deduct on her tax return for the current year.

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The Answer of Alma is in the business of dairy farming.During the year, one of her barns was completely destroyed by fire.The adjusted basis of the barn was $90,000.The fair market value of the barn before the fire was $75,000.The barn was insured for 95% of its fair market value, and Alma recovered this amount under the insurance policy.She has adjusted gross income of $40,000 for the year (before considering the casualty).Determine the amount of loss she can deduct on her tax return for the current year.

Alma Is in the Business of Dairy Farming