In 2014,Allen's pleasure boat was destroyed by a flood.He had purchased the boat in 2011 for $45,000.On what form(s)will Allen report this loss?
A)Form 4684,Casualties and Thefts,and Schedule A,Itemized Deductions.
B)Form 4684,Casualties and Theft,and Schedule D,Capital Gains and Losses.
C)Form 4797,Sales of Business Property and Involuntary Conversions,and Schedule D,Capital Gains and Losses.
D)On the first page of Form 1040.

Question

Quizplus · Accepted Answer

Allen will report the loss of his pleasure boat as a casualty loss on Form 4684, which is used for reporting casualties and thefts. He may then include this loss as an itemized deduction on Schedule A of his tax return, provided that the loss exceeds 10% of his adjusted gross income (AGI) and he has not been reimbursed by insurance or other sources.

In 2014,Allen's Pleasure Boat Was Destroyed by a Flood