Mr and Mrs King Had Only One Casualty Loss This

question 65

Multiple Choice

Mr and Mrs King had only one casualty loss this year when a tornado (a federally declared disaster) severely damaged their home, decreasing its value by $70,000. The couple received a $48,000 reimbursement from their insurance company. Compute the Kings' itemized deduction for casualty losses if their AGI was $98,200.

• A) $22,000
• B) $21,900
• C) $12,080
• D) $60,080

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