John Had Adjusted Gross Income of $60,000

question 31

Multiple Choice

John had adjusted gross income of $60,000.During the year his personal use summer home was damaged by a fire.Pertinent data with respect to the home follows:
Cost basis
$260,000
Value before the fire
400,000
Value after the fire
100,000
Insurance recovery
270,000
​
John had an accident with his personal use car.As a result of the accident,John was cited with reckless driving and willful negligence.Pertinent data with respect to the car follows:
Cost basis
$80,000
Value before the accident
56,000
Value after the accident
20,000
Insurance recovery
18,000
​
What is John's itemized casualty loss deduction?

• A)$0
• B)$2,000
• C)$17,000
• D)$18,000
• E)None of the above

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Definitions:

Negative Emotions

Feelings that are generally unpleasant and may include sadness, anger, fear, or frustration, impacting one's mental well-being.

Positive Or Negative

Terms used to describe the valence of various phenomena, including emotions, charges in physics, or results in testing.

General Adaptation Syndrome

A theoretical model describing the body's physiological response to stress in three stages: alarm, resistance, and exhaustion.

Fight-Or-Flight Response

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.