[tylerse]

HI everyone,

I just wanted to ask and double check I had the right answers.

1) What is the casualty loss limitations for 2011, 2010, and 2009? My Wiley book says $500 for 2009 and 2010, and the IRS website says $100 and that was updated on February 7th, 2011.

So which is right, or are they all right? And will the exam expect me to use different amounts depending on what year the question is asking about?

2) Along the lines of casualty losses, what is the rule on involuntary conversion gains? I have in my notes that you have 2 years from the close of the tax year, but I think in my book one of the MCQ’s used 3 years from the close of the tax year.

Any help would be great.

Thanks!

[Anonymous]

I had this same question! The wiley book is wrong. The floor amounts are:

2009: 500

2010: 100

2011: 100

Yes, this is testable on the exam.

For involuntary gains, I think its two years from the close of the tax year…

[Whenindoubt]

I agree on the casualty loss limitations of over $100 and exceeding 10% AGI.

Involuntary conversion for personal property is 2 years for taxable year-end, 4 years if a federally declared diaster area and for business property it's 3 years from the taxable year-end.

BEC: 75 11/8/10
AUD: 89 2/22/11
FAR: 78 5/17/11
REG: 72, 83 10/17/11
DONE!!!!

[Author]

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