A Flood Damaged an Auto Owned by Mr

question 89

Multiple Choice

A flood damaged an auto owned by Mr.and Mrs.South on June 15 of this year.The car was only used for personal purposes. Based on these facts,what is the amount of the South's casualty loss deduction after limitations for this year?

• A)$900
• B)$1,000
• C)$4,400
• D)$4,500

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Definitions:

Bonds

Fixed-income instruments that represent a loan made by an investor to a borrower, usually corporate or governmental, which pays back the face value at maturity, along with regular interest payments.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

Credit Card Debt

A type of unsecured liability which accrues when a consumer purchases goods or services with a credit card and fails to pay back the borrowed amount within the stipulated period.

Car Loan

A personal loan used to purchase a car, paid back in installments over a period of time, usually with interest.