You own a building that you constructed on leased land. You use half of the building for your business and you live in the other half. fte cost of the building was $400,000. You made no further improvements or additions to it.
A ﬁre in March damaged the entire building. fte FMV of the building was $380,000 immediately before the ﬁre and $320,000 afterwards. Your insurance company reimbursed you $40,000 for the ﬁre damage. Depreciation on the business part of the building before the ﬁre totaled $24,000.
How much is your deductible business casualty loss in 2012?

Question

Quizplus · Accepted Answer

The Answer of You own a building that you constructed on leased land. You use half of the building for your business and you live in the other half. fte cost of the building was $400,000. You made no further improvements or additions to it.
A ﬁre in March damaged the entire building. fte FMV of the building was $380,000 immediately before the ﬁre and $320,000 afterwards. Your insurance company reimbursed you $40,000 for the ﬁre damage. Depreciation on the business part of the building before the ﬁre totaled $24,000.
How much is your deductible business casualty loss in 2012?

You Own a Building That You Constructed on Leased Land