Ann Jones uses a dry cleaning machine in her business, and it was completely destroyed by ﬁre. At the time of the ﬁre, the adjusted basis was $20,000 and its fair market value was $18,000. How much is Ann's loss?

Question

Quizplus · Accepted Answer

If business or investment property is totally destroyed in a casualty, the amount of the loss is the taxpayer's adjusted basis in the property, even if it is greater than the property's fair market value

Ann Jones Uses a Dry Cleaning Machine in Her Business