Jarrett owns a mountain chalet that he purchased in 2008 for $175,000.This year,the home appraised at $300,000.Shortly after the appraisal,a blizzard hit the area in spring of the current year,destroying trees and severely damaging several homes,including Jarrett's chalet.Its value was reduced to $135,000.Jarrett does not have insurance.Jarrett's AGI is $200,000.Jarrett's deductible loss after limitations is
A)$135,000.
B)$144,900.
C)$164,900.
D)$165,000.

Question

Quizplus · Accepted Answer

B)Lesser of:
 11ea7cb8_5486_d374_928c_7b60bb0810cb_TB1258_00 or Reduction in FMV:
 11ea7cb8_5486_fa85_928c_8dd203c62a55_TB1258_00 11ea7cb8_5486_fa86_928c_8b3b393ff925_TB1258_00

Jarrett Owns a Mountain Chalet That He Purchased in 2008