Jim Jeeves Is a Self-Employed Individual

question 77

Essay

Jim Jeeves is a self-employed individual. During the current year, his car which he used 70 percent of the time for business and 30 percent for pleasure was totally destroyed in an accident. fte car had a fair market value of
$26,000 before the accident, which was less than the car's adjusted basis. Jim received only $2,000 as a recovery from his insurance company. His adjusted gross income is $48,000. What is the amount of the personal casualty loss deduction that Jim can report as an itemized deduction for the year?

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Definitions:

Investment Company

A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities.

Risk Aversion

The tendency of investors to prefer safer or less risky investments over riskier options.

Historical Standard Deviation

A statistical measure of market volatility based on past price movements.

Expected Return

The anticipated amount of profit or loss an investment is projected to generate.