Nell has a personal casualty loss deduction of $14,500 for regular income tax purposes. The deduction would have been $26,600, but it had to be reduced by $100 and by $12,000 (10% ´ $120,000 AGI). For AMT purposes, the casualty loss deduction is $26,600.

Question

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The AMT casualty loss deduction is calculated the same way as the regular tax casualty loss deduction, which means it would have also been reduced by 10% of Nell's AGI. Therefore, the AMT casualty loss deduction would also be $14,500.

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