In: Accounting
One month before she died on April 14, 2008, Susan Voss (Jenni’s mother) gave Jenni a coin collection. Based on careful records that Susan kept, the collection had a cost basis of $9,000 and a fair market value of $18,000 at the time Susan passed away. On February 12, 2018, the Wheat residence was burglarized, and the coin collection was stolen. The Danes filed a claim for $24,000 (the current value of the collection) with the carrier of their homeowner’s insurance policy. All they were able to collect, however, was $10,000, which was the maximum amount allowed for valuables (e.g., jewelry and antiques) without a special rider. What is allowed as a deduction?
Ans is 0
Explanation: Beginning with year 2018 TCJA has made major changes in casualty and theft losses deduction, earlier was allowed losses from Fire, storm, Theft, Shipwreck, and other casualty as theft and casualty loss deduction subject to more than $100 and aggregate losses exceeding more than 10% of adjusted gross income, But this casualty and theft deduction is eliminated for the period from 2018 through 2025 Except casualty losses that is results of federal disaster.