Multiple Choice
In 2016,the Chens' pleasure boat was severely damaged by a hurricane in an area that was declared a federal disaster area.They had AGI of $110,000 in 2016.The following information relates to the craft: Cost Basis $ 95,000
FMV before casualty 145,000
FMV after casualty 25,000
The Chens had insurance and received an $80,000 insurance settlement.What is the allowable casualty loss deduction for the Chens in 2016?
A) $3,900.
B) $3,000.
C) $50,000.
D) $15,000.
Correct Answer:
Verified
Correct Answer:
Verified
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