35 Miss. Code. R. 3-06-01-106
Current through October 31, 2024
In March, 1986, the taxpayer suffers a casualty loss from the flooding of his personal residence. The casualty sustained is $80,000, computed in accordance with provisions of the Internal Revenue Code, Rules, Regulations and Revenue Procedures. The taxpayer elects to deduct the loss on his return for the preceding year. The original 1985 return reveals the following data:
| Husband | Wife | ||
| Net Income (Adjusted Gross Income) | $30,000.00 | $15,000.00 | |
| Itemized Deductions: | |||
| Medical Expenses | $ 400.00 | ||
| Taxes | 1,500.00 | ||
| Misc. Deductions | 100.00 | ||
| Interest Expense | 3,500.00 | ||
| Contributions | 2,000.00 | ||
| 7,500.00 | .00 | ||
| Balance | 22,500.00 | 15,000.00 | |
| Personal Exemption | |||
| Married | 9,500.00 | ||
| Dependents (2 Children) | 3,000.00 | ||
| 7,500.00 | 5,000.00 | ||
| Taxable Income | 15,000.00 | 10,000.00 | |
| Tax Due | $ 950.00 | $ 600.00 | $ 350.00 |
| Computation of Net Casualty Loss-Form 62-170-Amended Return | |||
| Return For 1985 | |||
| Taxable Income Before | |||
| Personal Exemption: | $22,500.00 | $15,000.00 | |
| Casualty Loss | $80,000.00 | ||
| Per Casualty Deductible | ( 100.00) | ||
| 10% AGI Limitation | ( 4,500.00) | ||
| 60,400.00 | 15,000.00 | ||
| Net Casualty Loss | $37,900.00 | $ .00 | |
| Refund Due Taxpayers | $950.00 | ||
| Application of Net Casualty Loss. | |||
| 1982 Return Gross Income | $25,000.00 | $10,000.00 | |
| Net Casualty Loss Balance from 1985 | (27,900.00) | (10,000.00) | |
| Balance | $ (2,900.00) | $ ( .00) | |
| 1983 Return-Gross Income | $25,000.00 | $10,000.00 | |
| Net Casualty Loss Balance from 1982 | ( 2,900.00) | .00 | |
| 1983 Gross Income after Carryback | $22,100.00 | $10,000.00 | |
| Note that a net casualty loss carryback or carryover is deducted from gross income (before itemized deductions and personal exemption.) | |||
35 Miss. Code. R. 3-06-01-106