Question

In: Accounting

Which of the following would be considered a net loss during administration and be reported on...


Which of the following would be considered a net loss during administration and be reported on Schedule L?
A house fire that occurred prior to the decedent's death.
A theft that occurred during the settlement of the estate that is reimbursed by insurance.
Storm damage on the decedent's residence that occurred during the settlement of the estate that is not reimbursed by insurance.
Both B and C.

Solutions

Expert Solution

Only the losses from fire, theft, storm or other casualties that occurred during the settlement of the estate and the amount not reimbursed by insurance can be claimed as deduction.   
Storm damage on the decedent's residence that occurred during the settlement of the estate that is not reimbursed by insurance would be considered a net loss during administration.
Option C is correct

ekkarill92 answered 3 years ago
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