Marin operates a manufacturing business, and this year the three-year-old van she used in the business was destroyed in a fire. The van was originally purchased for $23,000 and the adjusted basis was $5,425 at the time of the accident. Although the van was worth $6,300 at the time of accident, insurance only paid Marin $1,575 for the loss. What is the amount of Marin's casualty loss deduction

$3850

Explanation:

From the question, we are informed that Marin operates a manufacturing business, and this year the three-year-old van she used in the business was destroyed in a fire. We are further told that the van was originally bought for $23,000 and the adjusted basis was $5,425 at the time of the accident and that although the van was worth $6,300 at the time of accident, insurance only paid Marin $1,575 for the loss.

The amount of Marin's casualty loss deduction will be the difference between the adjusted basis and the amount paid to Marin by the insurance company for the loss. This will be:

= $5425 - $1575

= $3850

answer; (cash) is the best out of the above; good luck

answertaxable income;