Amount of deduction for the loss


Problem: During the current year, Jacob's personal residence, some of the contents, and his car were damaged or destroyed b a fire. Information with respect to the damaged and destroyed assets is as follows:

Asset    Adjusted Balance FMV Before    FMV After    Insurance Recovery
Home        $300,000 $400,000 $350,000 $70,000
Car           $60,000 $55,000 $- $20,000
Contents    $80,000 $60,000 $10,000 $10,000

If Jacob's AGI is $100,000 before considering the effects of the fire, determine the amount the amount of his deduction for the loss.

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Accounting Basics: Amount of deduction for the loss
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