on Sept 1 of the tax year Alex's fishing boat sank off the coast of...
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on Sept 1 of the tax year Alex's fishing boat sank off the coast of NC due to a severe storm. The FMV of the boat prior to the casualty was $60,000. He bought the boat 5 years earlier for $35,000. His insurance reimbursed him $50,000. In November of the tax year, he purchased a smaller boat for $40,000. What is his recognized taxable gain for the year of the casualty.
a. $0
b. $10,000
C. $25,000
d. $50,000
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