Asked by Amanda Jones on Apr 28, 2024
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In 2017,the U.S.President declared a federal disaster due to the flooding in Louisiana.Danielle lives in that area and lost her home in the flood.What choice does she have regarding when she can claim the loss on her tax return?
A) It must be claimed in 2016 if the return has not been filed by the date of the loss.
B) It must be claimed in 2017 if the loss is greater than the modified adjusted gross income.
C) It may be claimed in 2018 if an election is filed with the 2017 return.
D) It may be claimed in 2016 or 2017.
Federal Disaster
An event significant in scale and impact, officially declared by the federal government, triggering access to federal funds and resources for recovery.
Tax Return
The documentation filed with tax authorities detailing income earned, taxes owed, and other information necessary to calculate tax liability.
Adjusted Gross Income
This is your gross income after adjustments have been made for certain deductions, crucial in determining your taxable income.
- Determine the right course of action for treating and reporting theft and casualty losses, with emphasis on the specific timing and form stipulations.
- Recognize the various types of deductions subject to limitations, such as medical expenses, miscellaneous itemized deductions, and casualty losses.
- Analyze the effect of casualty events on tax reporting, including the election of the tax year for claiming a loss.
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Learning Objectives
- Determine the right course of action for treating and reporting theft and casualty losses, with emphasis on the specific timing and form stipulations.
- Recognize the various types of deductions subject to limitations, such as medical expenses, miscellaneous itemized deductions, and casualty losses.
- Analyze the effect of casualty events on tax reporting, including the election of the tax year for claiming a loss.
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