recently purchased a beautiful house on a hillside in sunny
California at a cost of $1 million. Several days of heavy rainfall
led to heavy flooding and landslides throughout the region. A week
later, the president announces that Trevor’s county is a federally
declared disaster area. During the storm, Trevor is surprised to see
his neighbor’s house disappear in a mudslide. Visibly shaken,
Trevor makes immediate efforts to sell his home. Although the view
from his lot has improved considerably, he meets severe buyer
resistance when forced to explain why he lacks one set of neighbors.
Trevor’s best offer, made by a family just arrived in town, is
$500,000. Trevor reevaluates his life insurance portfolio, places his
personal affairs in order, and decides not to sell. Presuming the
landslide caused no physical damage to his property, does Trevor have
a casualty loss?
List as many possible tax
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