What is amount of casualty loss that reynaldo can claim

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Question - Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2021, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable:

Damaged Items

FMV Just Prior to Damage

Original Item Cost (Basis)

Antique poster bed

$ 6,200

$ 5,100

Pool table

7,125

11,275

Large flat-screen TV

750

2,675

Required - Their homeowner's insurance policy had a $10,135 deductible for the personal property, which was deducted from their insurance reimbursement of $12,975, resulting in a net payment of $2,840. Their AGI for 2021 was $35,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2021?

Reference no: EM133185303

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