Casualty loss: theoretical question

[thomtax]

This question looks suspiciously like something being done to provide for a classroom discussion in a tax class.

[Bees Knees]

But what if that cooffee cup had been handed down in the family since the Revolutionary war, and was worth$5,000., and a sentimental family family value of $10,000.?
Wpuld this change anything?

If it was handed down the family since the Revolutionary war, the adjusted basis is probably 2 cents. Casualty losses are limited to adjusted basis.

[Bird Legs]

Casualty Loss-Coffee Cup

But what if that cooffee cup had been handed down in the family since the Revolutionary war, and was worth$5,000., and a sentimental family family value of $10,000.?
Wpuld this change anything?

[les grans]

Shrink Shrank Shrunk

I was looking for an analogy that might shed some light on the student with the broken sprinkler head...

But if you think therapy might help... I'll wait until next year, after I make my FlexMed election... then the shrink's bill will be *fully* deductible *and* avoids FICA taxes, too! Planning, planning.

And I'm only looking for a casualty loss for my *tax basis* in the cup or its *FMV* whichever is less.

[Bees Knees]

No

TTB, page 4-20 says:

Nondeductible expenses. The following items are not deductible
as casualty and theft losses:

…

• The sentimental value of an item lost or destroyed in a casualty.

Since you keep asking this hypothetical question concerning your coffee cub even though you know it couldn’t possibly exceed $100 plus 10% of AGI, I detect a degree of sentimental value that you have placed upon such coffee cub that could border on some kind of psychological need to have closure on your loss.

If it makes you feel better, the cost of your therapy can be deducted as a medical expense if it exceeds 7.5% of your AGI.

[les grans]

"...under normal conditions." But I *never* break a coffee cup "under normal conditions."
Okay, let's have the cup knocked out of my hand when the truck jumped the curb. Is the loss I suffer from the breaking of the cup a casualty loss (except for the *mechanical* limitations, etc.)?

[JG EA]

I guess I'm just too dense to see the point.:-)

LT

The point(s) were already discarded. Unfortunately, because in audit there will now be no proof of loss since no police report was filed.

[thomtax]

Just curious

Except for the limitations and the thresholds and the floors and the need to itemize, do I have a casualty loss?

Since you have eliminated all the rules, regulations, etc with your quoted statement, what is the purpose of this question? I guess I'm just too dense to see the point.:-)

LT

[Bees Knees]

No

TTB, page 4-20 says:

Nondeductible expenses. The following items are not deductible
as casualty and theft losses:

….

• Accidentally breaking china, glassware, furniture, and similar
items under normal conditions.

[les grans]

I dropped my coffee mug this morning and it broke and can't be repaired. It was a present from a friend, and my basis in the cup is what it cost him, or its FMV at the time of the gift whichever is less (not zero is what I'm saying). I have homeowner's insurance but the value of the cup is less than my deductible. Except for the limitations and the thresholds and the floors and the need to itemize, do I have a casualty loss?