Determine the total deduction for the stolen items

Reference no: EM131884840

Question: During 2012, someone broke into Jacob's personal residence and took the following items:

Asset	Adjusted Basis	Fair Market Value (FMV) before	Fair Market Value (FMV) after	Insurance Recovery
Business computer	$12,000	$10,000	$ -0-	$ 7,000
Bearer bonds	30,000	25,000	-0-	-0-
Silverware	7,000	20,000	-0-	18,000
Cash	8,000	8,000	-0-	-0-

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner's insurance policy paid Jacob $7,000 for the stolen computer, Jacob's employer did not reimburse Jacob for any of the remainder of his loss. Jacob's 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 2012 tax return.

Reference no: EM131884840

Questions Cloud

Review stockholders equity section of the balance sheet : During 2014, Toney Corporation held a portfolio of available-for-sale securities having a cost of $221,700. There were no purchases or sales of investments.

Determine the tentative minimum tax base : Determine Gold Corporation's AMTI for 2015. Determine the tentative minimum tax base.

Compute the residual income for the division : For 2014, the New Products Division, of Testar Company, had operating income of $10,000,000 and operating assets of $46,800,000.

Prepare the method of depreciation for depreciable assets : During 2014 and 2015, Faulkner Manufacturing used the sum-of-the-years'-digits (SYD) method of depreciation for its depreciable assets.

Determine the total deduction for the stolen items : Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner's insurance policy paid Jacob $7,000 for the stolen.

What did dangerous dragon inc record : In 2010, Dangerous Dragon, Inc. (a retail clothing company) sold 550,847 units of its product at an average price of $19 per unit.

What is the cash flow to stockholders : The 2014 balance sheet of Creation Paints Incorporated showed $550,000 in the common stock account and $3.5 million in the additional paid-in capital/surplus.

What is the raymond net investment income tax : During 2015, Raymond a single individual, earned a salary of $206,000. He also had the following items of investment income: $50,000 net short term capital gain

What is center corporations federal taxable income : In 2015 Center Corporation, a calendar year, accrual basis C corporation, has pre-tax financial (book) income of $1,500,000.

User Account

All Pages