Norm's Car, Which He Uses 100% for Personal Purposes, Was

Multiple Choice

Norm's car, which he uses 100% for personal purposes, was completely destroyed in an accident in 2017. The car's adjusted basis at the time of the accident was $13,000. Its fair market value was $10,000. The car was covered by a $2,000 deductible insurance policy. Norm did not file a claim against the insurance policy because of a fear that reporting the accident would result in a substantial increase in his insurance rates. His adjusted gross income was $14,000 (before considering the loss) . What is Norm's deductible loss?

A) $0
B) $100
C) $500
D) $9,500
E) None of the above