A house purchased for $25,000 with an appreciated value of $160,000 was completely destroyed.The casualty loss was limited to the taxpayer's basis of $25,000.Why shouldn't the full $160,000 be allowed as a loss?

Question

Quizplus · Accepted Answer

The Answer of A house purchased for $25,000 with an appreciated value of $160,000 was completely destroyed.The casualty loss was limited to the taxpayer's basis of $25,000.Why shouldn't the full $160,000 be allowed as a loss?

A House Purchased for $25,000 with an Appreciated Value of $160,000