Final answer:
Kevin's allowable loss would be determined by the amount of loss that exceeds the insurance payments he received for the building and automobile, factoring in other financial and tax considerations.
Step-by-step explanation:
Assuming Kevin's insurance payouts of $36,000 for the building and $5,000 for his automobile, the allowable loss would be the amount of loss that exceeds these insurance payments. The actual calculation of an allowable loss would involve other factors, such as the original value of the assets, the basis used for tax purposes, any deductible amounts, and the precise nature of the insurance coverage.
It's important to consider that an allowable loss can also involve tax treatment, where only a portion of the total loss might be deductible on tax returns. For example, if Kevin's building was valued at $50,000, and after receiving the insurance payment, he has an uncompensated loss of $14,000. This could be his allowable loss, pending any limits or thresholds as defined by tax laws or insurance policy terms.