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Taxpayer's Principal Residence Is Destroyed by a Tornado

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Taxpayer's principal residence is destroyed by a tornado.Taxpayer is single and his realized gain is $400,000.Is it possible for the taxpayer's recognized gain to be $0?


Definitions:

External Attribution

The process of attributing the cause of one's own or another's behavior to factors outside the individual, such as the situation or environment.

Just World

The belief that the world is fundamentally fair and that justice prevails, leading individuals to rationalize injustices or victimization.

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external circumstances but the actions of others to inherent traits.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors when explaining others' behaviors.

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