Heather owns a two-story building the building is used 60

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Heather owns a two-story building. The building is used 60 percent for business use and 40 percent for personal use. During 2011, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $150,000 on business portion. At the time of the fire, building had a fair market value of $900,000. instantly after the fire, the fair market value was $200,000. The insurance recovery on building was $600,000. The contents of building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were completely destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also completely destroyed. If Heather's AGI is $100,000 before considering the effects of the fire, evaluate her itemized deduction as a result of the fire. Also determine Heather's AGI.

Reference no: EM13370732

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