This Summer,Rick's Home (Which Has a Basis of $80,000)is Damaged

question 22

Multiple Choice

This summer,Rick's home (which has a basis of $80,000) is damaged by a tornado.An appraisal by a realtor placed the FMV of the home at $120,000 before the tornado and at $85,000 after the tornado.Rick estimates that the insurance company will reimburse him for 60% of the loss.Next year,the insurance company pays Rick $20,000.Rick's current year's AGI is $50,000 and his next year's AGI is $55,000.Rick suffers no other casualty losses in either year.After limitations,Rick may deduct a casualty loss this year of

• A)$ 8,900.
• B)$ 9,900.
• C)$15,000.
• D)$35,000.

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Definitions:

Young Adults

Individuals in the age range of approximately 18-25 years, often characterized by transitions in education, employment, and personal relationships.

Health

The state of being free from illness or injury, encompassing physical, mental, and social well-being.

Early Adulthood

A life stage ranging approximately from the late teens or early twenties to the mid-thirties, characterized by physical maturity, independence, and the pursuit of career and family goals.

Revolving Door

A phrase often used to describe a situation in which individuals or conditions cyclically return to the original state despite attempts at change or progress.