Determine the total deduction for the stolen items


During 2011, someone broke into Jacob's personal residence and took the following items:

  • Asset Adjusted Basis FMV before FMV after Insurance Recovery
  • Business computer $12,000 $10,000 $0 $7,000
  • Bearer bonds $30,000 $32,000 $0 $0
  • Silverware $7,000 $10,000 $0 $2,000
  • Cash $8,000 $8,000 $0 $0

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner's insurance policy paid Jacob $7,000 for the stolen computer, Jacob's employer did not reimburse Jacob for any of the remainder of his loss. Jacob's AGI for the year, before considering any of the above items, is $50,000. Determine the total deduction for the stolen items on Jacob's 2011 tax return.

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Accounting Basics: Determine the total deduction for the stolen items
Reference No:- TGS0706177

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