Belinda was involved in a boating accident in 2021. Her speedboat, which was used only for personal use and had a fair market value of $28,000 and an adjusted basis of $14,000, was completely destroyed. She received $10,000 from her insurance company. Her AGI for 2021 is $37,000. What is Belinda’s casualty loss deduction (after any limitations)?

Teresa's manufacturing plant is destroyed by fire. The plant has an adjusted basis of $270,000, and Teresa receives insurance proceeds of $410,000 for the loss. Teresa reinvests $420,000 in a replacement plant within 2 years of receiving the insurance proceeds.

Christine died owning an interest in a passive activity property. The property had an adjusted basis of $228,500, a fair market value of $237,000, and suspended losses of $15,425 . What can be deducted on her final income tax return?

Mark had a structure that was destroyed by hurricane Michael, in a federally declared disaster area. Unfortunately, he had no insurance coverage on the structure. He gives you the following information: Fair Market Value of Structure before casualty $12,000 Adjusted Basis of building 18,000 Mark's Adjusted Gross Income before casualty 5,000 (2)Compute his deduction assuming this structure was used in his business. Show in your answer WHERE this deduction would be taken.

O Sebastian originally sold his home in an installment sale for $300,000. At the time, his adjusted basis in the home was $220,000. He qualified for the Section 121 principal residence exclusion, so his gain was not included in his taxable income for the year of sale. Three years later, he repossessed the home from the buyer when the balance of the note was $275,000. He spent $8,000 on improvements and resold it within the year for $320,000. What is Sebastian's recomputed adjusted basis in the property? $228,000 $258,000 $278,000 $308,000

Rose dies with passive activity property having an adjusted basis of $98,800, suspended losses of $31,616, and a fair market value at the date of her death of $138,320. Of the $31,616 suspended loss existing at the time of Rose's death, how much is deductible on her final return or by the beneficiary? The basis for the property i ; therefore, of the $31,616 suspended loss is to deductible on Rose's final return or by the beneficiary.

Moran owns a building he bought during year 0 for $198,000. He sold the building in year 6. During the time he held the building, he depreciated it by $50,000. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.   b. Moran received $213,000.

Noelle's diamond ring was stolen in 2017. She originally paid $15,400 for the ring, but it was worth considerably more at the time of the theft. Noelle filed an insurance claim for the stolen ring, but the claim was denied. Because the insurance claim was denied, Noelle took a casualty loss deduction for the stolen ring on her 2017 tax return. In 2017, Noelle had AGI of $77,000. After Noelle threatened legal action in early 2019, the insurance company had a "change of heart" and sent Noelle a check for $9,240 for the stolen ring. The per-event floor is $100. What is the proper tax treatment of the $9,240 Noelle received from the insurance company in 2019? Noelle should _______the amount of______.

Debbie’s warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2019. Debbie, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2020 and elects §1033 for involuntary conversions. Calculate Debbie’s 1. realized gain or loss, 2. recognized gain or loss, and 3. basis for the replacement property if she: A. Acquires a new warehouse for $550,000 in January 2020, or   B. Acquires a new warehouse for $500,000 in January 2020.

An individual suffered injuries in a vehicular accident in 2020. Consequently, he incurred and paid medical expenses of P300,000 and legal fees of P100,000 during the year. Later during the year, he accepted P500,000 settlement offered by the owner of the vehicle.   Required: Determine the amount of taxable income of the individual who suffered the injury.