Wes Owned a Business Which Was Destroyed by Fire in May

question 53

Essay

Wes owned a business which was destroyed by fire in May 2017.Details of his losses follow:
His AGI without consideration of the casualty is $45,000.
What is Wes's net casualty loss deduction for 2017?

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Definitions:

Auxiliary Filter

Any of a number of different types of add-on filters used in hydraulic circuits. Often installed on an Allison transmission after a catastrophic failure to remove particulate debris.

Stall Test

A test performed on vehicles with automatic transmissions to verify the performance of the engine and transmission, usually to determine if one is at fault.

Converter-Out Temperature

The temperature of the fluid exiting a converter, often monitored in vehicles or machinery for heat management.

Planetary Gearsets

A system of gears consisting of one or more outer gears (planet gears) revolving around a central (sun) gear, commonly used in automatic transmissions for gear ratio changes.