A fire in T's garage destroyed several uninsured items.The items included a moped (cost $400, FMV $300), a lawnmower (cost $95, FMV $75), and an electric table saw (cost $60, FMV $50).Only the value of the moped is potentially deductible, because the other items do not exceed the $100 floor for nonbusiness casualty losses.

Question

Quizplus · Accepted Answer

All the items (moped, lawnmower, and electric table saw) are potentially deductible as nonbusiness casualty losses, not just the moped. The $100 floor applies to each loss separately, and each item's fair market value (FMV) loss exceeds this threshold.

A Fire in T's Garage Destroyed Several Uninsured Items