Julie,who is single,has the following items for 2016:
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Salary-$100,000.
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A hurricane completely destroyed Julie's duplex during the current year.Julie lived in one-half of the duplex and rented out the other half.Julie paid $400,000 for the duplex and has taken $80,000 of cost recovery on the rental portion of the duplex.The duplex was worth $420,000 at the time of the destruction.Julie's insurance policy paid her 90% of the fair market value of the duplex.
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Household items destroyed in the hurricane had a basis of $15,000 and a fair market value of $8,500.There was no insurance recovery on the household items.
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Julie purchased a painting three years ago for $4,000.At the time of the hurricane,the painting was worth $10,000.Julie purchased the painting as an investment with the intent that she would sell it when its value exceeded $12,000.There was no insurance recovery on the painting.
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Julie had an automobile accident in the current year.Julie used the car 100% for personal purposes.The car cost $37,000 and had a decline in FMV as a result of the accident of $5,000.The car was insured,but the policy had a $2,000 deductible clause.Julie chose not to file a claim for the damage.
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Julie owned a computer that she used 100% for business.The computer was also completely destroyed in the hurricane.It had a basis of $6,000 and a FMV of $4,000 at the time it was destroyed.Julie was not reimbursed by her employer for the loss on the computer.
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Home mortgage interest-$10,000.
Determine the amount of Julie's taxable income for 2016.

Question

Julie,who is single,has the following items for 2016:
∙
Salary-$100,000.
∙
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A hurricane completely destroyed Julie's duplex during the current year.Julie lived in one-half of the duplex and rented out the other half.Julie paid $400,000 for the duplex and has taken $80,000 of cost recovery on the rental portion of the duplex.The duplex was worth $420,000 at the time of the destruction.Julie's insurance policy paid her 90% of the fair market value of the duplex.
∙
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Household items destroyed in the hurricane had a basis of $15,000 and a fair market value of $8,500.There was no insurance recovery on the household items.
∙
Julie purchased a painting three years ago for $4,000.At the time of the hurricane,the painting was worth $10,000.Julie purchased the painting as an investment with the intent that she would sell it when its value exceeded $12,000.There was no insurance recovery on the painting.
∙
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​
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Julie had an automobile accident in the current year.Julie used the car 100% for personal purposes.The car cost $37,000 and had a decline in FMV as a result of the accident of $5,000.The car was insured,but the policy had a $2,000 deductible clause.Julie chose not to file a claim for the damage.
∙
​
​
​
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Julie owned a computer that she used 100% for business.The computer was also completely destroyed in the hurricane.It had a basis of $6,000 and a FMV of $4,000 at the time it was destroyed.Julie was not reimbursed by her employer for the loss on the computer.
∙
Home mortgage interest-$10,000.
Determine the amount of Julie's taxable income for 2016.
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Quizplus · Accepted Answer

The Answer of Julie,who is single,has the following items for 2016:
∙
Salary-$100,000.
∙
​
​
​
​
A hurricane completely destroyed Julie's duplex during the current year.Julie lived in one-half of the duplex and rented out the other half.Julie paid $400,000 for the duplex and has taken $80,000 of cost recovery on the rental portion of the duplex.The duplex was worth $420,000 at the time of the destruction.Julie's insurance policy paid her 90% of the fair market value of the duplex.
∙
​
Household items destroyed in the hurricane had a basis of $15,000 and a fair market value of $8,500.There was no insurance recovery on the household items.
∙
Julie purchased a painting three years ago for $4,000.At the time of the hurricane,the painting was worth $10,000.Julie purchased the painting as an investment with the intent that she would sell it when its value exceeded $12,000.There was no insurance recovery on the painting.
∙
​
​
​
Julie had an automobile accident in the current year.Julie used the car 100% for personal purposes.The car cost $37,000 and had a decline in FMV as a result of the accident of $5,000.The car was insured,but the policy had a $2,000 deductible clause.Julie chose not to file a claim for the damage.
∙
​
​
​
​
Julie owned a computer that she used 100% for business.The computer was also completely destroyed in the hurricane.It had a basis of $6,000 and a FMV of $4,000 at the time it was destroyed.Julie was not reimbursed by her employer for the loss on the computer.
∙
Home mortgage interest-$10,000.
Determine the amount of Julie's taxable income for 2016.
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Julie,who Is Single,has the Following Items for 2016