In 2015, Wally had the following insured personal casualty losses (arising from one casualty). Wally also had $42,000 AGI for the year before considering the casualty.
Fair Market Value
|
Asset
|
Adjusted Basis
|
Before
|
After
|
Insurance Recovery
|
|
A
|
$9,200
|
$8,00
|
$1000
|
$2000
|
|
B
|
3,000
|
4,000
|
-0-
|
4,000
|
|
C
|
3,700
|
1,700
|
-0-
|
900
|
Wally's casualty loss deduction is:
a. $1,500.
b. $1,600.
c. $4,800.
d. $58,000.
e. None of the above.