Knox operated a business which was damaged by a hurricane in 2015. His losses were as follows: a. What is Knox's net casualty loss (if any) assuming his AGI is $85,000 prior 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 in 2015. His losses were as follows:  a. What is Knox's net casualty loss (if any) assuming his AGI is $85,000 prior 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 in 2015. His losses were as follows:  a. What is Knox's net casualty loss (if any) assuming his AGI is $85,000 prior 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