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wendyyy7774
wendyyy7774
12.11.2019 • 
Mathematics

In 2017, sarah (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her home. her insurance company told her that her policy did not cover the theft. in 2017, sarah's other itemized deductions were $2,000, and she had agi of $30,000. in february 2019, 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 2019. 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.

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