Examples
- A taxpayer’s insured home is destroyed by an accidental fire. Prior to its destruction, the home was valued at its adjusted basis of $100,000 and insured at $130,000. After receiving insurance proceeds, the taxpayer will have a personal casualty gain of $130,000 and a personal casualty loss of $100,000 for a net personal casualty gain of $30,000.
- A taxpayer owns a vacant lot covered with rocks. The lot has a fair market value of $30,000, but were the rocks not there, it would be worth $35,000. Late at night, a thief removes the rocks. The fair market value increases to $35,000. The taxpayer has a personal casualty gain of $5,000.
Read more about this topic: Personal Casualty Gains
Famous quotes containing the word examples:
“Histories are more full of examples of the fidelity of dogs than of friends.”
—Alexander Pope (1688–1744)
“In the examples that I here bring in of what I have [read], heard, done or said, I have refrained from daring to alter even the smallest and most indifferent circumstances. My conscience falsifies not an iota; for my knowledge I cannot answer.”
—Michel de Montaigne (1533–1592)
“No rules exist, and examples are simply life-savers answering the appeals of rules making vain attempts to exist.”
—André Breton (1896–1966)