Harris had adjusted gross income in the current year of $126,000 . During the year his personal summer home was almost completely destroyed by a cyclone. Pertinent data with respect to the home follows:
Cost basis $135,000
Value before casualty $145,000
Value after casualty $ 16,000
Harris was partially insured for his loss and in the current year he received a $113,000 insurance
settlement. What is Harris' allowable casualty loss deduction for the current year?
a. $0
b. $3,300
c. $3,400
d. $15,900
e. None of the above
b
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