Federal Tax Question
Tim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home. Tim originally paid $27,100 for the boat, but he was able to repair the damage for $6,450. Tim paid $16,850 for the motorcycle, but it was worth $19,000 before it was stolen. Insurance reimbursed $1,630 for the boat repairs and the cycle was uninsured.
A)Calculate Tim's deductible casualty loss if his AGI is $45,500
B)Calculate Tim's deductible casualty loss if his AGI is $144,500.
C)How would you answer a. if Tim received an additional $66,775 in interest from municipal bonds this year?