Question - During the year, Alicia's personal summer home was almost completely destroyed by a fire started in a work room. She had adjusted gross income of $110,000 in 2016 and related data with respect to the summer home follows:
Cost basis:$121,000Value before casualty:$155,000Value after casualty:$15,000
Alicia was partially insured for the loss and in 2016 she received a $100,000 insurance settlement. What is Alicia's allowable casualty loss deduction for 2016?
$9,900.
$20,900.
$35,900.
$55,000.