Knox operated a business which was damaged by a hurricane.His losses were as follows:
a.What is Knox's net casualty loss if any)assuming his AGI is $85,000 prior to the deduction? Assume he properly replaced all assets.
b.What is his basis in replacement Asset 1 purchased for $8,000 assuming Knox elected the non-recognition of gain from an involuntary conversion?

Question

Knox operated a business which was damaged by a hurricane.His losses were as follows:
  a.What is Knox's net casualty loss if any)assuming his AGI is $85,000 prior to the deduction? Assume he properly replaced all assets.
b.What is his basis in replacement Asset 1 purchased for $8,000 assuming Knox elected the non-recognition of gain from an involuntary conversion?

Quizplus · Accepted Answer

The Answer of Knox operated a business which was damaged by a hurricane.His losses were as follows:
  a.What is Knox's net casualty loss if any)assuming his AGI is $85,000 prior to the deduction? Assume he properly replaced all assets.
b.What is his basis in replacement Asset 1 purchased for $8,000 assuming Knox elected the non-recognition of gain from an involuntary conversion?

Knox Operated a Business Which Was Damaged by a Hurricane