Carolyn has a personal casualty loss deduction of $8,500 for regular income tax purposes.The deduction would have been $17,600,but it had to be reduced by $100 and by $9,000 (10% ´ $90,000 AGI).For AMT purposes,the casualty loss deduction is $17,600.

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The casualty loss deduction for AMT purposes is also subject to the reduction of 10% of AGI, therefore, it would also be reduced by $9,000. The deduction for AMT purposes would be $8,500 - $9,100 (10% x $90,000 AGI) = -$600, which is not allowed for AMT purposes. Therefore, the AMT casualty loss deduction would be $0, not $17,600.

Carolyn Has a Personal Casualty Loss Deduction of $8,500 for Regular