Malika and Henry's vacation home was completely destroyed by fire.They had no insurance to cover the loss.On which of the following forms would they report their loss?

Question

Quizplus · Accepted Answer

Malika and Henry would report their loss on Form 4684 as a casualty loss and theft, and then can itemize the deduction on Schedule A of their tax return. This option allows them to potentially receive a tax benefit for their loss. Option A is incorrect because reporting the loss on Schedule A alone without Form 4684 would not be sufficient. Option B is incorrect because it only mentions reporting the loss on Form 4684 and adjusting gross income, but it does not address the itemized deduction on Schedule A. Option D is incorrect because it does not address the possibility of claiming an itemized deduction on Schedule A.

Malika and Henry's Vacation Home Was Completely Destroyed by Fire