Determine the total deduction for the stolen items

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Reference no: EM13123345

During 2011, someone broke into Jacobs personal residence and tool the following items:

Asset Adjusted FMV Before FMV After Insurance
Basis Recovery
Business Computer $12,000 $10,000 -0- $7,000
Bearer Bonds 30,000 32,000 -0- -0-
Silverware 7,000 10,000 -0- 2,000
Cash 8,000 8,000 -0- -0-

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowners insurance policy paid Jacob $7,000 for the stolen computer, Jacobs employer did not reimburse Jacob for any of the remainder of his loses. Jacobs AGI for the year, before considering any of the above items is $50,000.

Determine the total deduction for the stolen items on Jacob's 2011 tax return.

Reference no: EM13123345


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