Question

Maggie is single, a calendar year taxpayer, and owns a home in Topeka that was damaged by a tornado in 2013. The area where Maggie lives was declared a federal disaster area. Maggie can deduct:

A. her entire loss on her 2012 tax return
B. her entire loss on her 2013 tax return.
C. a portion of the loss her 2012 return and the remainder on her 2013 return
D. either A or B

Answer 1

Maggie can deduct her entire loss on her 2013 tax return.

Step-by-step explanation:

Maggie, as a calendar year taxpayer and owner of a home in Topeka that was damaged by a tornado in 2013, can deduct her loss on her 2013 tax return. The fact that the area where Maggie lives was declared a federal disaster area allows her to claim the deduction. Therefore, the correct answer is B. her entire loss on her 2013 tax return.