Your client built a house in 2012 at a cost of $2 million.During Harvey...

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Accounting

Your client built a house in 2012 at a cost of $2 million.During Harvey storm, the house got flooded and there was a 2 ft.water in the house. He finished remodeling the house in 2018 at acost $150,000. The approximate square feet of the house is 10,000.The fair market of the house before the flood damage was 2,125,000and the fair market value after the flood damage was $1,500,000.There was a considerable damage to the furniture, fixtures andother contents of the house. Calculate Casualty loss from the houseassuming his AGI for 2017 is $350,000. File IRS-form 4684

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Calculation of casualty loss Adjusted basis of house before storm 2000000 Decrease in fair value of house after storm 625000 Casualty loss 625000 Casualty loss is lower of adjusted basis before storm or See Answer

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In: AccountingYour client built a house in 2012 at a cost of $2 million.During Harvey storm,...Your client built a house in 2012 at a cost of $2 million.During Harvey storm, the house got flooded and there was a 2 ft.water in the house. He finished remodeling the house in 2018 at acost $150,000. The approximate square feet of the house is 10,000.The fair market of the house before the flood damage was 2,125,000and the fair market value after the flood damage was $1,500,000.There was a considerable damage to the furniture, fixtures andother contents of the house. Calculate Casualty loss from the houseassuming his AGI for 2017 is $350,000. File IRS-form 4684