Question: During the year, Alicia's personal summer home was almost completely destroyed by a fire started in a work room. She had adjusted gross income of $110,000 in 2016 and related data with respect to the summer home follows:
|
|
|
| Cost basis: |
$ |
121,000 |
| Value before casualty: |
$ |
155,000 |
| Value after casualty: |
$ |
15,000 |
|
Alicia was partially insured for the loss and in 2016 she received a $100,000 insurance settlement. What is Alicia's allowable casualty loss deduction for 2016?