R's personal sailboat is destroyed in a hurricane.The sailboat has a basis of $2,000 and a fair market value of $3,000.If R chooses not to file a claim with the insurer for the loss of the boat, she may deduct what amount of the loss?

Question

Quizplus · Accepted Answer

Personal casualty losses are only deductible in the tax year 2018 through 2025 if the loss is attributable to a federally declared disaster. Since the question does not specify that the hurricane was a federally declared disaster, and there's no mention of R choosing to file a claim under such a circumstance, the deduction would be $0.

R's Personal Sailboat Is Destroyed in a Hurricane