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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Definitions:

Federal and State Laws

Regulations and statutes enacted by federal and state governments to govern individual and collective actions.

Insurance Reimbursement

The process by which health insurance providers compensate individuals or healthcare providers for services covered under a health insurance plan.

IDEA

The Individuals with Disabilities Education Act, a U.S. law ensuring services to children with disabilities throughout the nation.

Single Axis Diagnosis

A method of diagnosing psychiatric disorders focusing on a primary diagnostic category without systematically integrating multiple domains of functioning.