Casualty and Theft Losses (Individual)

10% AGI Test

Smaller loss basis (lost cost or decreased FMV)

<Insurance Recovery>

Taxpayer's Loss

<$100> (IRS Tax)

Eligible Loss

<10% AGI>

Deductible Loss

Typically the smallest # in choices because:

• Insurance recovery usually eliminates the majority of the loss basis
• 10% AGI will also wipe out the majority of the loss #