Steve Keeps a Valuable Bonsai Collection in His Back Yard

question 48

Essay

Steve keeps a valuable bonsai collection in his back yard. In 2014, thieves disarmed his security system and stole several of the bonsai. The stolen bonsai had a fair market value and adjusted basis of $4,700. Assuming that Steve had no insurance coverage on the bonsai and his adjusted gross income for 2014 is $32,000, calculate the amount of his theft loss deduction.

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Definitions:

Fixed Socialization

The process through which individuals learn and adapt to the norms and values of a specific group or society, often viewed as stable and unchanging.

Assigned Mentor

A person who is deliberately chosen to provide guidance, knowledge, and support to another individual, often in a professional or academic context.

Psychosocial Functions

The roles that social interactions and relationships play in influencing an individual's psychological health and development.

Career Functions

The roles and activities that contribute to an individual's career development and progression within a professional context.