Final answer:
Morley can itemize a total deduction of $9,000 from the rental property damage and theft of bonds losses on his tax return, as personal casualty losses are not deductible when personal gains exceed the losses after the $100 floor is applied.
Step-by-step explanation:
When calculating itemized deductions from losses for Morley, a single taxpayer with an AGI of $30,000, we must consider the applicable tax rules for casualty and theft losses.
The loss from damage to rental property of $6,000 and the loss from theft of bonds at $3,000 are classified as losses from income-producing property and could be deducted in full, so the total loss deduction for these items is $9,000. Then, we calculate the personal casualty loss, which in Morley's case involves both gains and losses. The personal casualty gain is $4,000, and the personal casualty loss is $9,000. After applying the $100 floor to the personal casualty loss, we have $8,900. Because Morley's personal casualty gains exceed his losses, he would not be able to deduct any personal casualty losses, according to tax laws. Therefore, only the losses related to the rental property and theft of bonds are taken into account.
Considering this information, Morley can itemize a total deduction of $9,000 from the losses on his tax return.