John had adjusted gross income of $60,000. During the year his personal use summer home was damaged by a fire. Pertinent data with respect to the home follows:
John had an accident with his personal use car. As a result of the accident, John was cited with reckless driving and willful negligence. Pertinent data with respect to the car follows:

What is John's itemized casualty loss deduction?

Question

John had adjusted gross income of $60,000. During the year his personal use summer home was damaged by a fire. Pertinent data with respect to the home follows: ​
 John had an accident with his personal use car. As a result of the accident, John was cited with reckless driving and willful negligence. Pertinent data with respect to the car follows:
​
 What is John's itemized casualty loss deduction?

Quizplus · Accepted Answer

John's casualty loss deduction is limited to the amount of the loss minus $100 and 10% of his adjusted gross income, which in this case would be ($10,000 - $100 - $6,000) =$3,900. However, since his casualty loss deduction is less than zero, he cannot claim any deduction for the loss.

John Had Adjusted Gross Income of $60,000