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 $28,200 for the boat, but he
was able to repair the damage for $10,050. Tim paid $18,550 for the motorcycle, but it was
worth $20,350 before it was stolen. Insurance reimbursed $1,200 for the boat repairs and the
cycle was uninsured
Calculate Tim's deductible casualty loss if his AGI is $50,000.
How would you answer a. if Tim received an additional $65,000 in interest from municipal
bonds this year?
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 $28,200 for the boat, but he
was able to repair the damage for $10,050. Tim paid $18,550 for the motorcycle, but it was
worth $20,350 before it was stolen. Insurance reimbursed $1,200 for the boat repairs and the
cycle was uninsured
Solution
a. the total loss= cycle loss= $18,550
repairs loss= $8,850
total= $27,400
if the duductible casualty loss is $50,000, then the remaining balance= $22,600
c. if he received additional amount of $65,000 then he can write of his losses and he can enjoy
the remaining amount