Kenneth Kruise purchased a personal residence for $66,000. It had a fair market value of $80,000 in the current year when it was damaged by a ﬁre. fte fair market value after the ﬁre was $40,000 and insurance proceeds totaled $15,000. What is the net amount of casualty loss he can claim if his adjusted gross income is $20,000?

Question

Quizplus · Accepted Answer

the reduction in fair market value is less than the basis; thus, that amount must be reduced by the insurance proceeds, $100 and 10 percent of adjusted gross income because of the nonbusiness casualty loss.
 11eb4b56_517a_925c_acd1_c716b88140ca_TB1942_00

Kenneth Kruise Purchased a Personal Residence for $66,000