Individual Taxpayers Cannot Deduct as Itemized Deductions Losses Arising from fiRe

question 56

True/False

Individual taxpayers cannot deduct as itemized deductions losses arising from fire, storm, shipwreck, or other casualty, or from theft of nonbusiness property.

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Definitions:

Personal Property

Tangible, movable goods (chattels) and intangible claims (choses in action).

Chattels

Tangible, movable personal property that can be measured and weighed; also known as goods.

Fixtures

Items that are attached to a property in such a way that they become part of the property and cannot be removed without permission.

Continuing Guarantee

A provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.