Nonbusiness Casualty or Theft Gains and Losses
Response to the following problem:
Blake's home was burglarized. Artwork purchased six years ago and a brand new Plasma TV were stolen. Blake had no other nonbusiness casualties or thefts during the year. Based on the information provided below about the theft, describe the tax consequences on Blake's tax return.
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FMV Before
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Adjusted Basis
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Insurance Proceeds
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Artwork
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$10,000
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$5,500
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$9,500
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Plasma TV
|
1,200
|
2,000
|
1,000
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