Alicia Was Involved in an Automobile Accident in 2017

Multiple Choice

Alicia was involved in an automobile accident in 2017. Her car was used 60% for business and 40% for personal use. The car had originally cost $40,000. At the time of the accident, the car was worth $20,000 and Alicia had taken $8,000 of depreciation. The car was totally destroyed and Alicia had let her car insurance expire. If Alicia's AGI is $50,000 (before considering the loss) , determine her itemized deduction for the casualty loss.

A) $4,500
B) $6,100
C) $8,000
D) $24,000
E) None of the above