During the year, Melissa’s beach condo was destroyed by a h…
During the year, Melissa’s beach condo was destroyed by a hurricane that devastated the Gulf coast. President Biden announced a federal disaster declaration for the whole area. She had a basis of $250,000 but the insurance adjuster determined to repair or replace the property was $275,000. She received $200,000 in insurance proceeds. Her AGI was $150,000 for this year. How much can Melissa deduct for a casualty loss?