In 2014,Morley,a single taxpayer,had an AGI of $30,000 before considering the following items: Determine the amount of Morley's itemized deduction from the losses.

Question

In 2014,Morley,a single taxpayer,had an AGI of $30,000 before considering the following items:  Determine the amount of Morley's itemized deduction from the losses.

Quizplus · Accepted Answer

AGI before casualties $30,000
Rental property loss (6,000)
Personal casualty gain $4,000
Personal casualty loss (4,000)-0-
Adjusted gross income $24,000
Itemized deductions
Casualty loss [($9,000 - $4,000)- (10% × $24,000)] $2,600
Miscellaneous itemized deductions 3,000
Total itemized deductions $ 5,600
The bonds are property held for the production of income,but not attributable to rents or royalties.Therefore,the loss is a miscellaneous itemized deduction not subject to the 2%-of-AGI floor.

In 2014,Morley,a Single Taxpayer,had an AGI of $30,000 Before Considering