In the Current Year, Larry Jones Was Involved in a Collision

question 23

Essay

In the current year, Larry Jones was involved in a collision which totally destroyed his car. fte automobile, which cost $24,000 and had a fair market value of $10,200 right before the accident, was used solely for personal use. fte car had no value after the accident. Assuming that Larry had adjusted gross income of $70,000 and carried no collision insurance, what amount can he deduct as a net casualty loss for the year?

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Definitions:

Companies Creditors Arrangements Act

A Canadian federal law providing financially troubled corporations the opportunity to restructure their affairs through a formal plan of arrangement.

Bankruptcy and Insolvency Act

Legislation that outlines the legal procedures for dealing with the debts of individuals and businesses in financial trouble.

Canadian Criminal Code

A legal document that codifies most criminal offenses and procedures in Canada, serving as the primary source for criminal law in the country.

Over-the-counter Market

A decentralized market without a central physical location, where market participants trade stocks, commodities, currencies, and other financial instruments directly between two parties without a broker's intermediation.