In 2016,Morley,a Single Taxpayer,had an AGI of $30,000 Before Considering

question 38

Multiple Choice

In 2016,Morley,a single taxpayer,had an AGI of $30,000 before considering the following items:
Loss from damage to rental property
($6,000)
Loss from theft of bonds
(3,000)
Personal casualty gain
4,000
Personal casualty loss (after $100 floor)
(9,000)
​
Determine the amount of Morley's itemized deduction from the losses.

• A)$0
• B)$2,900
• C)$5,120
• D)$5,600
• E)None of the above

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Definitions:

Written Acknowledgment

A document provided by a charity to a donor confirming a charitable contribution and detailing the value of the contribution and if any goods or services were provided in exchange.

Foreign Taxes

Taxes paid to a foreign government on income earned outside of the taxpayer's country of residence.

Schedule A

An itemized deductions form where taxpayers list eligible expenses to reduce their taxable income, including medical, taxes paid, interest, gifts to charity, and casualty losses.

Foreign Tax Credit

A permanent tax credit for income taxes handed over to an overseas authority as a consequence of foreign income tax deductions.