Question
In: Accounting
Casualty/theft losses for itemized dudections? On April 1, 2017, Paige’s house was robbed. She apparently interrupted...
Casualty/theft losses for itemized dudections?
On April 1, 2017, Paige’s house was robbed. She apparently interrupted the burglar because all that’s missing is an antique brooch she inherited from her grandmother (June 12, 2009) and $300 in cash. Unfortunately, she didn’t have a separate rider on her insurance policy covering the jewelry. Therefore, the insurance company reimbursed her only $500 for the brooch. Her basis in the brooch was $6,000, and its fair market value was $7,500. Her insurance policy also limits to $100 the amount of cash that can be claimed in a theft.
Thanks
Solutions
Expert Solution
For the property held by you for personal use, you must deduct $100 from each casualty or theft that occured during the year after younhave subtracted any salvage value any insurance or other reimbursement. Then add up all those amount and subtract 10% of your adjusted gross income from that to calculate your allowable casualty and theft losses for the year.
Note: You can claim your itemized deduction on Form 1040 Schedule A and report casualty and theft losses on Form 4684 and Use Sectiona A for personal use property.
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