John had adjusted gross income of $60,000. During the year, his personal use summer home was damaged by a fire….
John had adjusted gross income of $60,000. During the year, his personal use summer home was damaged by a fire. Pertinent data with respect to the home follows:
Cost basis $250,000
Value before the fire $400,000
Value after the fire
$100,000
Insurance recovery $270,000
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