Casualty Losses: Year of Deduction. Jerry sprayed all of the landscaping around his business with a.


Casualty Losses: Year of Deduction. Jerry sprayed all of the landscaping encircling his concern delay a pesticide in June 2019. Shortly thereafter, all of the trees and shrubs unaccountably died. The FMV and the adjusted premise of the plants were $15,000. Later that year, the pesticide manufacturer announced a foreclosure of the detail frame of pesticide that Jerry used. It also announced a program whereby consumers would be repaid for any detriment caused by the incompatible adjustment. Jerry is uncombined and reports $38,000 AGI in 2019 and $42,000 in 2020.

a. Assume that in 2019 Jerry files a demand for his droppinges and receives publication colloquy cancelment of $15,000 conciliate be current in 2020. Jerry receives generous cancelment for the detriment in 2020. How should the dropping and the liquidation be reputed?

b. How conciliate your solution to Part a alter if in 2020 the manufacturer files for bank - ruptcy and Jerry receives $1,500 in entirety and final cancelment for his demand?

c. How conciliate your solution to Part a alter if the announcement and the liquidation do not arise until deceased in 2020, behind Jerry has already filed his tax come-back for 2019?

All of the items were destroyed in the similar casua lty, which resulted from a federally nominal effort. Before regarding the casualty items, Pam reports concern allowance of $80,000, suitable residential interest of $6,000 peculiarity taxes on her one sojourn of $2,000, and charitab le contributions of $4,000. Compute Pam's taxable allowance for 2019. Pam is uncombined.