Tom is a carpenter who owns his own furniture manufacturing business. During the current year, a tornado (a federally de

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Tom Is A Carpenter Who Owns His Own Furniture Manufacturing Business During The Current Year A Tornado A Federally De 1 (45.55 KiB) Viewed 25 times

Tom is a carpenter who owns his own furniture manufacturing business. During the current year, a tornado (a federally declared disaster) damaged several pieces of equipment and destroyed his delivery truck and his personal automobile, which he often kept in the workshop garage. The asset descriptions and related values are as follows: i (Click the icon to view the descriptions and values.) Although he could not obtain its fair market value after the casualties, Tom decided to repair rather than replace Equipment C. Before considering any deductions because of these casualties, Tom's AGI is $94,000. Requirement What deductions may Tom take relating to these losses? First complete the first portion of the analysis to determine the net business casualty loss deduction Tom may take. In the following step, determine the personal casualty loss deduction Tom may take relating to the tornado. (Enter a loss with a minus sign or parentheses. Complete all input fields. Enter a "0" for any zero balances.) Cost to Repair/Replace Adjusted Basis Insurance Casualty Gain Proceeds (Loss) Asset Equipment A Equipment B $ FMV Before FMV After 12,200 $ 3,000 $ 10,100 0 10,200 $ 4,300 7,000 10,700 1,500 Equipment C Not Available Not Available 15,200 16,500 11,200 Delivery Truck 15,000 0 34,000 13,900 11,000 Net business casualty loss deduction Now determine the personal casualty loss deduction Tom may take relating to the tornado. Adjusted Basis Cost to Repair/Replace 5,500 Insurance Casualty Gain Proceeds (Loss) Asset FMV Before FMV After 8,000 0 Automobile 5,500 9,900 $ 18,000