In 2017, Grant's Personal Residence Was Completely Destroyed by Fire

question 78

Multiple Choice

In 2017, Grant's personal residence was completely destroyed by fire.Grant was insured for 100% of his actual loss, and he received the insurance settlement.Grant had adjusted gross income, before considering the casualty item, of $30,000.Pertinent data with respect to the residence follows: $$\begin{array} { l r } \text { Cost basis } & \$ 280,000 \\\text { Value before casualty } & 250,000 \\\text { Value after casualty } & - 0 -\end{array}$$ What is Grant's allowable casualty loss deduction?

• A)$0
• B)$6,500
• C)$6,900
• D)$10,000
• E)$80,000

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