Chandler’s home was damaged by a hurricane in a Federally declared disaster area. The fair market value of his home before the hurricane was $300,000. After the hurricane, the fair market value of the home dropped to $250,000. Damage to his home was estimated at $75,000. The adjusted basis of Chandler’s home before the hurricane was $150,000. Chandler received an insurance payment for the damage in the amount of $30,000. Chandler’s AGI is $90,000. What is Chandler’s deductible casualty loss?
a. $65,900
b. $49,900
c. $35,900
d. $10,900