Asked by Samantha Matias on Apr 28, 2024
Verified
If a taxpayer's personal property is completely destroyed,the casualty loss deduction is still reduced by a required floor amount.
Casualty Loss Deduction
A tax deduction that allows individuals to deduct certain property losses resulting from a sudden, unexpected, or unusual event.
Personal Property
Assets or belongings that are not permanently attached to or part of real estate; includes both tangible items like cars and furniture, and intangible items like stocks and bonds.
- Comprehend the handling of casualty and theft loss deductions within tax legislation.
Verified Answer
CM
Cameron MichaelApr 30, 2024
Final Answer :
True
Explanation :
The casualty loss deduction for personal property is still subject to a required floor amount, regardless of whether the property is partially or completely destroyed. The floor amount is determined by applying a percentage of the taxpayer's adjusted gross income (AGI) to the total casualty losses for the year.
Learning Objectives
- Comprehend the handling of casualty and theft loss deductions within tax legislation.
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