In the fall of 2011, a severe storm struck the resort area of South Padre Island.As a result, many people suffered losses due to water damage and subsequent looting.R did not discover that his resort condominium had been burglarized until 2012.Similarly, S did not determine that there had been water damage to his condominium until 2012.

Question

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R will report his loss on his 2012 tax return since he did not discover the burglary until 2012. S will also report his loss on his 2012 tax return since he did not determine the water damage until that year. Therefore, choice B is incorrect. Choice A is also incorrect since R cannot report a loss on an amended return for a year in which he was not aware of the loss. Therefore, the correct answer is choice C.

In the Fall of 2011, a Severe Storm Struck the Resort