Please clearly indicate which answer is for what part. Tim suffered greatly this year. In January...

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Please clearly indicate which answer is for what part.
Tim suffered greatly this year. In January a freak storm damagedhis sailboat and in July Tim's motorcycle was stolen from hisvacation home. Tim originally paid $30,600 for the boat, but he wasable to repair the damage for $7,050. Tim paid $18,050 for themotorcycle, but it was worth $19,600 before it was stolen.Insurance reimbursed $1,540 for the boat repairs and the cycle wasuninsured.
a. Calculate Tim's deductible casualty loss ifhis AGI is $38,500.
b. Calculate Tim's deductible casualty loss ifhis AGI is $137,500.
c. How would you answer a. if Tim received anadditional $44,725 in interest from municipal bonds this year?

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3.8 Ratings (521 Votes)

Boat Motorcycle Decline in Value 7050 19600 Adjusted Basis 30600 18050 Lesser of basis or Value 7050 18050 Less Insurance proceeds 1540 Uninsured Loss 5510 See Answer

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*Please clearly indicate which answer is for what part.* Tim suffered greatly this year. In January...