## Related questions with answers

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?

Solution

VerifiedGiven:

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

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

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

## Create a free account to view solutions

## Create a free account to view solutions

## Recommended textbook solutions

#### Financial Algebra

1st Edition•ISBN: 9780538449670 (1 more)Richard Sgroi, Robert Gerver#### Financial Algebra: Advanced Algebra with Financial Applications

2nd Edition•ISBN: 9781337271790Richard Sgroi, Robert Gerver#### Practice Problems for Financial Algebra: Advanced Algebra with Financial Applications

2nd Edition•ISBN: 9781337271820Robert Gerver## More related questions

1/4

1/7