Virginia gain or loss as a result of these casualties


Virginia has a casualty gain of $5,000 and a casualty loss of $2,500, before reduction by the $500 floor. The gain and loss were the result of two separate casualties, and both properties were personal use assets. What is Virginia's gain or loss as a result of these casualties?

a) $5,000 capital gain and $2,500 capital loss

b) $5,000 capital gain and $2,400 itemized deduction, subject to the 10% of AGI limitation

c) $5,000 capital gain and $2,500 itemized deduction, subject to the 10% of AGI limitation

d) $5,000 capital gain and $2,000 capital loss

e) None of the above

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Accounting Basics: Virginia gain or loss as a result of these casualties
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