Juanita,who Is Single,is in an Automobile Accident in 2016 and Her

question 32

Multiple Choice

Juanita,who is single,is in an automobile accident in 2016 and her car sustains $6,200 in damages.Juanita does not expect to recover any of the loss from her insurance company.Juanita's 2016 AGI is $31,000,and she deducts a $3,000 loss on her 2016 tax return.Her other itemized deductions in 2016 exceed $12,000.In 2017,Juanita's insurance company reimburses her $2,800.Juanita's 2017 AGI is $28,000.As a result,Juanita must

• A)amend 2016 to show a $200 loss.
• B)do nothing and simply keep the $2,800.
• C)do nothing to the 2016 return but report $2,800 of income on her 2017 return.
• D)amend the 2016 return to show $0 loss and file her 2017 return to show a $200 loss.

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Definitions:

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