The Ottomans Own a Winter Cabin in Durango, Colorado

question 39

Multiple Choice

The Ottomans own a winter cabin in Durango, Colorado. They purchased the cabin in 1984 for $65,000. During the current year, a blizzard partially destroys the cabin. The fair market value of the cabin after the blizzard is $70,000. The insurance company estimates that the cost of repairing the cabin will be $40,000. The insurance company will reimburse the Ottomans for 70% of the repair cost. What can they deduct as a casualty loss if their adjusted gross income for the year is $80,000?

• A) $ 3,900
• B) $ 4,000
• C) $ 8,000
• D) $11,900
• E) $12,000

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Definitions:

Public Health

The science and practice of protecting and improving the health of a population through preventive health measures, policies, and research.

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Initiatives and programs in the workplace aimed at improving the health and well-being of employees, often including physical, mental, and social aspects.

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An increase in the average period a person is expected to live.

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The ability to carry out daily tasks with vigor and alertness, without undue fatigue, and with ample energy to enjoy leisure activities.