Grant’s personal residence was completely destroyed by fire. He was insured for 100% of his actual loss, and he received the insurance settlement. Grant had adjusted gross income before considering the casualty item of $30,000. Pertinent data with respect to the residence follows:

Cost basis $280,000
Value before casualty 250,000
Value after casualty –0–

What is Grant's allowable casualty loss deduction?

Complete question:

Grant’s personal residence was completely destroyed by fire. He was insured for 100% of his actual loss, and he received the insurance settlement. Grant had adjusted gross income before considering the casualty item of $30,000. Pertinent data with respect to the residence follows:

Cost basis $280,000

Value before casualty 250,000

Value after casualty –0–

What is Grant's allowable casualty loss deduction?

a. $6,900

b. $6,500

c. $80,000

d. $0

e. $10,000

$0 is Grant's allowable casualty loss deduction

Explanation:

The proceeds received are $250,000.

Therefore, Grant has no casualty gain or a casualty loss.

You may opt to subtract the loss in the fiscal year immediately prior to the catastrophe whether you had a loss from a tragedy that was deemed federal occurring in an region that required public or private assistance (or both).

You can assert this tax without having to determine your deductions if you are eligible for a deduction on loss of death. You no longer intend to surpass 10% of your AGI, but you have now increasing the $100 per injury to $500 per injury.

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

answer; /// i believe the correct answer is first in, first out(fifo); //