A Taxpayer Suffers a Casualty Loss on Personal-Use Property for Which

question 83

Essay

A taxpayer suffers a casualty loss on personal-use property for which he has insurance coverage.However,to avoid a premium adjustment,the taxpayer fails to make a timely claim.In this situation is the full deduction for the casualty,after the normal floors,available to the taxpayer? Why or why not?

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Definitions:

Promissory Note

A written promise to pay a specified sum of money to a designated party at either a fixed or determinable future date.

Maturity Date

The specified date on which the final payment on a loan, bond, or other financial instrument is due and is to be paid in full.

Compound-Interest GIC

A Guaranteed Investment Certificate where the interest is compounded at regular intervals, leading to an increase in the amount earned over time.

Compounded Semiannually

An interest calculation method where the interest is added to the principal twice a year, leading to interest on interest in the subsequent periods.