Mary’s diamond ring was stolen in 2011. She originally paid $8,000 for the ring, but it was worth…


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Mary’s diamond ring was stolen in 2011. She originally paid $8,000 for the ring, but it was worth… 1 answer below » LO.4 Mary’s diamond ring was stolen in 2011. She originally paid $8,000 for the ring, but it was worth considerably more at the time of the theft. Mary filed an insurance claim for the stolen ring, but the claim was denied. Because the insurance claim was denied, Mary took a casualty loss for the stolen ring on her 2011 tax return. In 2011, Mary had AGI of $40,000. In 2012, the insurance company had a “change of heart” and sent Mary a check for $5,000 for the stolen ring. Discuss the proper tax treatment of the $5,000 Mary received from the insurance company in 2012. Dec 10 2013 05:48 PM

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