Barney's sailboat is destroyed in an unusual accident. The sailboat, which he used for personal purposes, caught fire forcing him and his friends to jump ship and swim for shore. The boat exploded and sank. Barney purchased the boat in 1998 for $75,000 . At the time that it is destroyed, the boat has a value of $45,000 . Barney's insurance company pays him $25,000 in full settlement of this loss
Barney's adjusted gross income is $60,000 . If this is his only casualty loss during the year, what amount can he deduct as a casualty loss?
a. $13,900
b. $14,000
c. $19,900
d. $44,900
e. None of the above.
a
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