In 2019, wally had the following insured personal casualty losses (arising from one casualty in a federally declared disaster area). 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 $8,000 $1,000 $2,000 b 3,000 4,000 -0- 4,000 c 3,700 1,700 -0- 900
wally's casualty loss deduction is:

$1300

Explanation:

Initial amount of loss (lesser of AB or decline in value less insurance proceeds):

Asset A: $7000 - $2000 = $5000

Asset B: $4000 - $4000 = $0

Asset C: $1700 - $900 = $800

Total = $5800

10% of AGI = $4,200

Therefore, Wally's casualty loss deduction is: $5800 - $300 - $4200 = $1300

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answer///ability to capture the attention of users;