Question

Meena incurred a loss attributable to a qualified federal disaster in the tax year. What is the casualty loss deduction amount to be reported on Form 1040, Schedule A?

a) $0
b) $2,500
c) $35,000
d) $2,500

Answer 1

The casualty loss deduction amount to be reported on Form 1040, Schedule A would be $0.

Step-by-step explanation:

The casualty loss deduction amount to be reported on Form 1040, Schedule A for Meena's loss attributable to a qualified federal disaster in the tax year would be $0 (option a).

According to the IRS guidelines, casualty losses are only deductible to the extent that they exceed any reimbursement from insurance or other sources. If Meena did not receive any reimbursement for the loss, the deduction would be $0.

Therefore, option a) $0 is correct.