1. 

   letsfixthis
   

   offline

   Member

   Becker and Wiley seem to be contradicting each other about Casualty Losses. Do you include the cost of clean up when calculating your loss? Example:

   Your house, adjusted basis of $230,000, is destroyed by a tornado.
   It cost you $10,000 to clear out all the debris/rubble.
   Your insurance company reimburses you $200,000.

   Is your (initial) calculable loss $30,000 (Wiley), or is it $40,000 (Becker just suggested including the cleanup costs in a problem, whereas Wiley did not).

   This is obviously before considering the 10% AGI and $100 reductions......

   Any thoughts?

   Happy Thanksgiving by the way, nothing makes me more thankful than having to study for REG right now instead of spending time with my family and friends!

   BEC: 87 (7/13/11)
   FAR: 86 (8/31/11)
   AUD: 99 (10/6/11)
   REG: 88 (11/30/11)
   Ethics: 100
   (Illinois)
   
   Used Becker for all four parts. Supplemented it with Wiley Test Bank for FAR and REG (HIGHLY recommended) and NINJA notes.

   • Share this on Facebook
   • Tweet This!

   Posted 6 months ago #
2. 

   KasiaS
   

   offline

   Member

   Based on my studies, I think the $30K is the correct answer because the only thing you consider in calculating losses is the lesser of AB or decline of FMV less insurance proceeds, followed by $100 floor, then 10% of AGI. I don't think cleanup costs are factored in for this deduction.

   FAR 88 (07/15/11)
   BEC 83 (08/31/11)
   AUD 81 (10/15/11)
   REG 83 (11/26/11)
   
   Used NIU Correspondence CPA Review

   Posted 6 months ago #
3. 

   letsfixthis
   

   offline

   Member

   Thanks Kasia, good luck next week. Will be nice for us to be done with all of this for good in December, eh?

   BEC: 87 (7/13/11)
   FAR: 86 (8/31/11)
   AUD: 99 (10/6/11)
   REG: 88 (11/30/11)
   Ethics: 100
   (Illinois)
   
   Used Becker for all four parts. Supplemented it with Wiley Test Bank for FAR and REG (HIGHLY recommended) and NINJA notes.

   Posted 6 months ago #
4. 

   KasiaS
   

   offline

   Member

   Most definitely! I have less than 2 days to master the rest of Corp Tax and I am just dying to have this behind me. I toyed with the idea of pushing off til Nov 30, but I figure if I don't know it now, I probably won't get much more progress from 3 more days.

   Besides, the couples massage is already scheduled for 2PM on Sat after the exam :)

   I hope to all the accounting gods that be that I NEVER have to study this doody again after Sat. I just want that darn 75. No more, no less. My friend made me feel better because she said she was scoring in the 60s on practice runs and walked away with a 90, so I feel a little better.

   FAR 88 (07/15/11)
   BEC 83 (08/31/11)
   AUD 81 (10/15/11)
   REG 83 (11/26/11)
   
   Used NIU Correspondence CPA Review

   Posted 6 months ago #

RSS feed for this topic