Daniel's Cabin Was Destroyed in a Massive Tornado in 2017

question 8

Multiple Choice

Daniel's cabin was destroyed in a massive tornado in 2017.After consideration of insurance,he has a loss of $15,000.The President of the United States has declared the area a disaster area.Daniel can deduct this loss in

• A)2016.
• B)2017.
• C)2018.
• D)either 2016 or 2017.

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Definitions:

Call Option

A finance-related contract granting the buyer the privilege, rather than a requirement, to buy an asset at a fixed price within a set period.

Risk-Free Bond

A debt security that is assumed to have no risk of default, typically issued by a government with a stable financial outlook, allowing investors to predict with a high degree of confidence their return on investment.