Kate had adjusted gross income of $20,000 this year. Her beach house was destroyed by a hurricane.
Cost basis: $90,000
Value before casualty: $100,000
Value after casualty: $5,000
Insurance recovery: $85,000
Her city apartment was also broken into and a necklace with a cost of $3,000 and a FMV of 5,000 was stolen. She did not have insurance for her stolen necklace. What is her allowable casualty deduction for this year?
