coralaguilar1702
coralaguilar1702
28.10.2019 • 
Business

Heather owns a two-story building. the building is used 40% for business use and 60% for personal use. during 2019, a fire caused major damage to the building and its contents. heather purchased the building for $800,000 and has taken depreciation of $100,000 on the business portion. at the time of the fire, the building had a fair market value of $900,000. immediately after the fire, the fair market value was $200,000. the insurance recovery on the building was $600,000. the contents of the building were insured for any loss at fair market value. the business assets had an adjusted basis of $220,000 and a fair market value of $175,000. these assets were totally destroyed. the personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. these assets were also totally destroyed. if heather's agi is $100,000 before considering the effects of the fire, determine her itemized deduction as a result of the fire. also determine heather’s agi.

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