Purchase Solution

Auto accident and 2013 AGI

Not what you're looking for?

Ask Custom Question

Juanita, who is single, is in an automobile accident in 2012 and her car sustains $6,200 in damages. Because both drivers received tickets in the accident, Juanita does not expect to recover any of the loss from her insurance company. Juanita's 2012 AGI is $31,000, and she deducts a $3,000 loss on her 2012 tax return. Her other itemized deductions in 2012 exceed $12,000. In 2013, Juanita's insurance company reimburses her $2,800. Juanita's 2013 AGI is $28,000. As a result, Juanita must:

A. amend 2012 to show a $200 loss.
B. do nothing and simply keep the $2,800.
C. do nothing to the 2012 return but report $2,800 of income on her 2013 return.
D. amend the 2012 return to show $0 loss and file her 2013 return to show a $200 loss.

Purchase this Solution
Solution Summary

This solution provides the correct answer with calculation and explanation to the auto accident/AGI tax question presented. The solution includes the correct way to arrive at the answer, and explains the limitations involved, as per the applicable year's tax law.

Solution Preview

Her loss is $6200 and she receives a check for 2800.

6200 - 2800 = Her actual loss is therefore $3,400. Because she ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basics of corporate finance

These questions will test you on your knowledge of finance.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • Taxable Status of Transactions

    365654 Taxable Status of Transactions Salary: $48,000 Damage award (compensatory) for city bus accident: $18,000 Loss on sale of stock investment: $5,600 Loan from father to purchase auto: $14,000 Alimony paid to ex-wife: $8,000 What is the

  • Taxation: Court, Series EE, child tax credit, Sec 1231

    Their AGI was $123,440. What amount of child tax credit may they claim on their 2009 tax return? 6- Jim was in an auto accident this year. Jim paid $2,450 to repair his car after the accident, and his insurance only reimbursed him $400.

  • Kim had the following transactions for 2006: Salary: $48,000

    auto: $14,000 Alimony paid to ex-wife: $8,000 What is Kim's AGI for 2006?

  • Tax deductions: auto expenses

    They total $4800 less the 50% limitation on meals and less 2% of AGI = $3700. The two tax problems about auto expenses and employee business expenses are answered including an explanation for the response.

  • Calculate business income, self employment tax and AGI

    I suggest you work through the numbers and check my math. The 300+ word solution presents a step-by-step process to calculation business income, self employment tax, and finally AGI.

  • Deductible loss and rental property

    546915 Deductible Loss and Rental Property Using 2013 Tax Code: Shaunda has AGI of $90,000 and owns rental property generating a $27,000 loss. She actively manages the property. Her deductible loss is: A. $0. B. $13,500. C. $25,000.

  • Tax Liability, AGI, and Capital Transactions

    This solution calculates Emma's AGI for 2012. Addison's tax liability in various tax brackets is also calculated, and Madison's transactions for income tax purposes is also thoroughly explained.

  • Medical Expense Deduction and State Income Tax Deduction

    533745 Medical Expense Deduction and State Income Tax Deduction Question 1: Medical Expense Deduction and Reimbursement (LO. 2) Hunter and Cynthia are married and together have AGI of $100,000 in 2012.

  • Bob Brown was recently involved in a minor auto accident

    116187 Medical Coverage and Costs after Car Accident Bob Brown was recently involved in a minor auto accident. His car was hit from behind, and he, in turn, slammed into the car in front of him.

View More Related Solutions