The Frazins Had Adjusted Gross Income of $140,000 in 2014

question 100

Multiple Choice

The Frazins had adjusted gross income of $140,000 in 2014.During the year,their principal residence was severely damaged by a house fire.The pertinent financial information is as follows: Cost basis = $134,000
Value before casualty = $156,000
Value after casualty = $20,000
The Frazins had some insurance and in 2014 reached a settlement with the insurance company for $110,000 insurance settlement.What is their allowable casualty loss deduction for 2014?

• A)$ 9,900.
• B)$23,900.
• C)$36,000.
• D)None of the above.

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