During the year Joe earned a salary of 18000 and experienced

During the year Joe earned a salary of $18,000 and experienced casualty losses that resulted in the following items: Personal use casualty gain $500 Personal use casualty loss (after $100 floor) ($2,000) Determine the amount of Joe\'s itemized deduction from the casualty loss.

a. $1,500.

b. $2,000.

c. $400.

d. $0.

e. None of the above.

Solution

Amount of salary earned = $18000

Personal use casualty gain=$500

Personal use casualty loss=$2000

The amount of Joe\'s itemized deduction from casualty loss is part d i.e., $0 as personal lossed are not allowed as deduction.