Alicia was involved in an automobile accident in 2018. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If Alicia's AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss.

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The Answer of Alicia was involved in an automobile accident in 2018. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If Alicia's AGI is $50,000 (before considering the loss), determine her AGI and itemized deduction for the casualty loss.

Alicia Was Involved in an Automobile Accident in 2018