Question

Ben crashed his new car in 2022 while doing donuts in the high school parking lot. It was a complete loss. The fair value of the car was $18,000. He did not have insurance. His AGI is $10,000. What is the amount of his casualty loss in 2022?

$17,000
$0
$17,900
$18,000

Answer 1

Ben's casualty loss would be the fair market value of the car, as it was a total loss. So, in this case, his casualty loss for 2022 would be $18,000. But remember, tax situations can be complicated and it's always a good idea to check with a tax professional!