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(Solved): In 2023, the Redfeathers' vacation cottage was severely damaged by an earthquake in a location that ...



In 2023, the Redfeathers' vacation cottage was severely damaged by an earthquake in a location that was a Presidentially Declared Disaster area. They had an AGI of $110,000 in 2023, and following is information related to the cottage: Cost basis$ 95,000FMV before casualty135,000FMV after casualty20,000 The Redfeathers' had insurance and received an $80,000 insurance settlement. What is the amount of allowable casualty loss deduction for the Redfeather’s in 2023 before the AGI and event limitation?



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