McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 57

Tim suffered greatly this year.In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home.Tim originally paid $27,000 for the boat, but he was able to repair the damage for $6,200.Tim paid $15,500 for the motorcycle, but it was worth $17,000 before it was stolen.Insurance reimbursed $1,000 for the boat repairs and the cycle was uninsured.a.Calculate Tim's deductible casualty loss if his AGI is $50,000.b.Calculate Tim's deductible casualty loss if his AGI is $150,000.c.How would you answer a.if Tim received an additional $65,000 in interest from municipal bonds this year?