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

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Accounting

Your client built a house in 2012 at a cost of $2 milliondollars. During Harvey storm, the house got flooded and there was 2ft. of water in the house. He finished remodeling the house in 2018at a cost of $150,000. The approximate square feet of the house is10,000. The fair market of the house before the flood damage was$2,125,000 and the fair market value after the flood damage was$1,500,000. There was a considerable damage to the furniture,fixtures and other contents of the house. Calculate Casualty lossfrom the house assuming his AGI for 2017 is $350,000. He had noflood insurance. (3 children, one in college and two other smallchildren)
Fill out form 4684 - casualty loss
Explain how you came up with the calculations.

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SolutionCalculation of Casualty See Answer

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In: AccountingYour client built a house in 2012 at a cost of $2 milliondollars. During Harvey...Your client built a house in 2012 at a cost of $2 milliondollars. During Harvey storm, the house got flooded and there was 2ft. of water in the house. He finished remodeling the house in 2018at a cost of $150,000. The approximate square feet of the house is10,000. The fair market of the house before the flood damage was$2,125,000 and the fair market value after the flood damage was$1,500,000. There was a considerable damage to the furniture,fixtures and other contents of the house. Calculate Casualty lossfrom the house assuming his AGI for 2017 is $350,000. He had noflood insurance. (3 children, one in college and two other smallchildren)Fill out form 4684 - casualty loss Explain how you came up with the calculations.