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The Lowatsky family had $9,441 worth of hurricane damage that was not covered by insurance. They need to follow IRS procedures to take a casualty deduction on Schedule A. a. The IRS requires that$100 be deducted from each casualty. What is the total casualty loss after the $100 is deducted? b. Their adjusted gross income is$67,481. Find 10% of their adjusted gross income. c. Their Schedule A casualty deduction can be found by subtracting 10% of the adjusted gross income from the answer to part a. What is their casualty loss deduction?

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Given:

Hurricane damage=$9,441IRS deduction=$100Adjusted gross income=$67,481\begin{align*} \text{Hurricane damage}&=\$9,441 \\ \text{IRS deduction}&=\$100 \\ \text{Adjusted gross income}&=\$67,481 \end{align*}

(a) The total casualty loss after the deduction is the hurricane damage decreased by the IRS deduction.

Total casualty loss=Hurricane damageIRS deduction=$9,441$100=$9,341\begin{align*} \text{Total casualty loss}&=\text{Hurricane damage}-\text{IRS deduction} \\ &=\$9,441-\$100 \\ &=\$9,341 \end{align*}

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