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:

Degree of Control

The extent to which an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.

Resources Required

The necessary materials, funds, personnel, and other assets needed to carry out a project, initiative, or operation.

Environmental Performance

An evaluation of how well an organization or activity is managing its impact on the environment.

Disclosure of Corporations

Disclosure of corporations involves the act of making financial, operational, and governance-related information available to the public and regulatory bodies to ensure transparency and accountability.