Question

Warren's RV was destroyed by fire in 2013. He purchased the RV in 2011 for $300,000. He did not insure the RV. Warren reports his loss on:

A. Schedule A, Itemized Deductions, and Form 4684, Casualties and Thefts
B. Schedule D, Capital Gains and Losses, and Form 4684, Casualties and Theft
C. Schedule D, Capital Gains and Losses, and Form 4797, Sales of Business Property and Involuntary Conversions
D. the first page of his Form 1040

Answer 1

Warren should report his loss on Schedule A, Itemized Deductions, and Form 4684, Casualties and Thefts.

Step-by-step explanation:

Warren should report his loss on Schedule A, Itemized Deductions, and Form 4684, Casualties and Thefts.

When a taxpayer suffers a casualty loss as a result of a fire or theft, the loss is generally deductible on Schedule A as an itemized deduction. Form 4684 is used to calculate the deductible amount of the loss.

In this case, since Warren did not insure his RV, he can claim a deduction based on its fair market value at the time of the loss, which would be the purchase price minus any depreciation.