Riley operates a plumbing business, and this year the three-year-old van he used in the business was destroyed in a traffic accident. The van was originally purchased for $20,800, and the adjusted basis was $5,700 at the time of the accident. Although the van was worth $6,080 at the time of accident, insurance only paid Riley $1,300 for the loss. What is the amount of Riley's casualty loss deduction?

Riley operates a plumbing business, and this year the three-year-old van he used in the business was destroyed in a traffic accident. The van was originally purchased for $20,800, and the adjusted basis was $5,700 at the time of the accident. Although the van was worth $6,080 at the time of accident, insurance only paid Riley $1,300 for the loss. What is the amount of Riley's casualty loss deduction?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 48P

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