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  3. in year 1, kane's residence had an adjusted basis

In Year 1, Kane's residence had an adjusted basis of $250,000 and it was destroyed...

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Accounting

In Year 1, Kane's residence had an adjusted basis of $250,000 and it was destroyed by a tornado. The residence was located in a federally declared disaster area. An appraiser valued the decline in market value at $425,000. Later that same year, Kane received $200,000 from his insurance company for the property loss and did not elect to deduct the casualty loss in an earlier year. Kane's Year 1 adjusted gross income was $100,000 and he did not have any casualty gains. What total amount can Kane deduct as a Year 1 itemized deduction for casualty loss, after the application of the threshold limitations

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