Amount of simons casualty loss deduction-how is deducted

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Reference no: EM13792249

Simon Samson runs a catering business, Simple Simons, out of his home. He uses the same kitchen for his business and for personal purposes. The business use of the kitchen is 60% and the personal use is 40%. On July 4, Simple Simons had an explosion in the kitchen when someone threw flour on a flaming dessert. The damage to the assets in the kitchen cost $50,000 to repair. Simon originally paid $95,000 for the assets that were damaged. At the time of the explosion, total depreciation properly taken on the assets is $8,000. Their fair market value before the explosion was $110,000. The insurance company reimbursed Simon $30,000. His AGI before any casualties is $70,000.

What is the amount of Simon’s casualty loss deduction and how is it deducted?

Reference no: EM13792249

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Amount of simons casualty loss deduction-how is deducted : Simon Samson runs a catering business, Simple Simons, out of his home. He uses the same kitchen for his business and for personal purposes. The business use of the kitchen is 60% and the personal use is 40%. On July 4, Simple Simons had an explosion ..

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