Norm's car,which he uses 100% for personal purposes,was completely destroyed in an accident in 2014.The car's adjusted basis at the time of the accident was $13,000.Its fair market value was $10,000.The car was covered by a $2,000 deductible insurance policy.Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates.His adjusted gross income was $14,000 (before considering the loss) .What is Norm's deductible loss?
A) $0
B) $100
C) $500
D) $9,500
E) None of these
Correct Answer:
Verified
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