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Tim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home. Tim origi- nally paid $27,000 for the boat, but he was able to repair the damage for $6,200. Tim paid $15,500 for the motorcycle, but it was worth $17,000 before it was stolen. Insurance reimbursed $1,000 for the boat repairs and the cycle was uninsured.
a) Calculate Tim's deductible casualty loss if his AGI is $50,000.
b) Calculate Tim's deductible casualty loss if his AGI is $150,000.
c) How would you answer (a) if Tim received an additional $65,000 in interest from municipal bonds this year?
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