During the Year,Megan's Personal Summer Home Was Almost Completely Destroyed

question 85

Multiple Choice

During the year,Megan's personal summer home was almost completely destroyed by a fire started in a work room.She had adjusted gross income of $110,000 in 2014 and related data with respect to the summer home follows: Cost basis: $121,000
Value before casualty: $155,000
Value after casualty: $ 15,000
Megan was partially insured for the loss and in 2014 she received a $100,000 insurance settlement.What is Megan's allowable casualty loss deduction for 2014?

• A)$ 9,900.
• B)$20,900.
• C)$35,900.
• D)$55,000.

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Definitions:

Confederacy

Refers to the Confederate States of America, a collection of 11 southern states that seceded from the United States from 1860-1865, leading to the American Civil War.

Navajo Men

Members of the Navajo Nation, a Native American tribe primarily residing in the southwestern United States, known for their rich cultural heritage.

Union Army

The land force that fought for the Union (the Northern states) during the American Civil War, primarily against the Confederate Army of the Southern states.

Forced to Fight

A situation where individuals are compelled to engage in combat or conflict, often through conscription, coercion, or as a condition of enslavement.