In 2016, Sarah (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her home. Sarah's insurance company told her that her policy did not cover the theft. Sarah's other itemized deductions last year were $2,000. She had AGI of $30,000 last year. In August of 2017, Sarah's insurance company decided that Sarah's policy did cover the theft of the silverware and they paid Sarah $5,000. Determine the tax treatment of the $5,000 received by Sarah during 2017.
a. $5,000 should be included in gross income.
b. Last year's return should be amended to include the $5,000.
c. None of the $5,000 should be included in gross income.
d. $2,900 should be included in gross income.
e. None of these choices are correct
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In 2016, Sarah (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her home. Sarah's insurance company told her ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
James received a 2018 Form 1099-G with $600 in box 2 and 2017 in box 3. Which of the following is not true about this income?
Answers (1)
An asset was acquired on January 1, 2021, for $15,000 with an estimated 4-year life and $1,000 residual value. The company uses straight-line depreciation. Calculate the gain or loss if the asset was sold on December 31, 2023, for $5,000. a.
Answers (1)
An expression about whether financial statements conform with generally accepted accounting principles
Answers (1)
In which of the following types of accounts are decreases recorded by debits? a. assets b. dividends c. liabilities
Answers (1)
Computer Corp. just paid a dividend of $0.75. If the firm's growth in dividends is expected to remain at a flat 3 percent forever, then what is the cost of equity capital for Computer Corp. if the price of its common shares is currently $12.00 A. 9.
Answers (1)
New Questions in Business
Who or what is responsible for bringing together scarce resources to produce most of the goods and services in the u. s.?
Answers (1)
Southland Company is preparing a cash budget for August. The company has $17,500 cash at the beginning of August and anticipates $121,800 in cash receipts and $135,500 in cash disbursements during August.
Answers (1)
A domino is a rectangular tile composed of two squares. An integer is represented on both squares, and each integer 0-9 is paired with every integer 0-9 exactly once to form a complete set.
Answers (1)
Shelly Moyer has been granted a mortgage loan at an annual interest rate of 6% for 20 years. The home has a selling price of $170,000. The bank requires a 20% down payment. What are Shelly's closing costs including the down payment?
Answers (1)
How did lenin's bolshevik ideas differ from marx's? lenin believed that workers must be in control in order to have a peaceful society. lenin believed that every russian should serve a required time of military service.
Answers (1)