Question

Which of the following is a true statement?

a. A casualty loss on personal-use assets is generally not deductible.
b. A casualty loss on investment property is generally not deductible.
c. All casualty losses are deductible.
d. A casualty loss on personal-use asset is deductible for AGI.
e. None of the choices are correct.

Answer 1

A. A casualty loss on personal-use assets is generally not deductible.

Step-by-step explanation:

In the event that your property is personal-use property or isn't totally annihilated, the measure of your casualty loss is the lesser of:

• The adjusted premise of your property, or
• The diminishing in fair market value of your property because of the casualty