Nell records a personal casualty loss deduction of $14,500 for regular income tax purposes. The loss was computed as $26,600, but it was reduced by $100 and by $12,000 (10% × $120,000 AGI). For AMT purposes, the casualty loss deduction also is $14,500.

Question

Quizplus · Accepted Answer

For both regular tax and AMT purposes, the casualty loss deduction is calculated the same way, so the deduction remains $14,500 for AMT.

Nell Records a Personal Casualty Loss Deduction of $14,500 for Regular