Riley operates a plumbing business and this year the 3-year old van he used in the business was destroyed in a traffic accident. The van was originally purchased for $20,000 and the adjusted basis was $5,800 at the time of the accident. Although the van was worth $6,000 at the time of accident, insurance only paid Riley $1,200 for the loss. What is the amount of Riley's casualty loss deduction?
A) $6,000.
B) $14,000.
C) $5,800.
D) $4,600.
E) $5,300.

Question

Quizplus · Accepted Answer

Adjusted basis less insurance reimbursement ($5,800 − $1,200).

Riley Operates a Plumbing Business and This Year the 3-Year