A flood damaged an auto owned by Mr.and Mrs.South on June 15 of this year.The car was only used for personal purposes. Based on these facts,what is the amount of the South's casualty loss deduction after limitations for this year?

Question

A flood damaged an auto owned by Mr.and Mrs.South on June 15 of this year.The car was only used for personal purposes.  Based on these facts,what is the amount of the South's casualty loss deduction after limitations for this year?

Quizplus · Accepted Answer

The amount of casualty loss deduction for personal property on Form 1040 is calculated by subtracting $100 and 10% of adjusted gross income (AGI) from the total casualty loss. As there is no information given about AGI, we assume it to be $0. 
Casualty loss = $1,000 (assumed)
- $100 (fixed deduction)
- $0 (10% of AGI)
= $900. Therefore, the South's casualty loss deduction after limitations for this year is $900, which is option A.

A Flood Damaged an Auto Owned by Mr