Alan Owns a Ranch in Kansas How Much Loss from the Tornado Can He Deduct on One

question 16

Essay

Alan owns a ranch in Kansas.During the year,a tornado damaged one of his barns and destroyed some equipment.The following information provides the details of the losses Alan suffered from the tornado.
$\begin{array}{lccccc} & \text { Adjusted Basis } & \text { FMV Before } & \text { FMV After } & \text {Insurance Proceeds } \\\text { Barn } & \$ 75,000 & \$ 90,000 & \$ 40,000 & \$ 30,000 \\\text { Bailer } & \$ 25,000 & \$ 15,000 & \$ 0 & \$ 15,000 \\\text { Truck } & \$ 15,000 & \$ 18,000 & \$ 0 & \$ 10,000\end{array}$ How much loss from the tornado can he deduct on his tax return for the current year?

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Definitions:

Maladaptive

Behaviors or thought patterns that are counterproductive to an individual's wellbeing or adaptation to their environment.

Stresses

States of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Everyday Demands

The regular pressures and requirements of daily living that individuals need to manage or satisfy.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of officially recognized psychiatric disorders, used by healthcare professionals in the U.S. and other countries.