When a Nonbusiness Casualty Loss Is Spread Between Two Taxable

question 45

True/False

When a nonbusiness casualty loss is spread between two taxable years, the loss in the second year is reduced by 10% of adjusted gross income for the first year.

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Definitions:

Annual Premium

The total cost paid per year for an insurance policy to remain in effect.

Deductible

The amount an insured individual must pay out-of-pocket before an insurance company pays a claim.

Accident Reconstructionist

Person with knowledge of both crime scene investigations and the mathematics that can help to explain the circumstances surrounding the accident.

Skid Marks

Visible marks left on the road surface by tires that have slipped or skidded, often analyzed in accident reconstructions.