In 2014,Juan's home was burglarized.Juan had the following items stolen: -Securities worth $25,000.Juan purchased the securities four years ago for $20,000.
-New tools which Juan had purchased two weeks earlier for $8,000.Juan uses the tools in making repairs at an apartment house that he owns and manages.
-An antique worth $15,000.Juan inherited the antique (a family keepsake)when the property was worth $11,000.
Juan's homeowner's policy had a $50,000 deductible clause for thefts.If Juan's salary for the year is $50,000,determine the amount of his itemized deductions as a result of the theft.

Question

Quizplus · Accepted Answer

Salary $50,000
Less: Loss on theft of tools (8,000)
AGI $42,000
Personal use property theft loss $11,000
Less: $100 floor (100)
10% of AGI (10% × $42,000)(4,200)
Deductible loss $ 6,700
Loss on securities 20,000
Total itemized deductions $26,700

In 2014,Juan's Home Was Burglarized