In 2018, the Rinaldis’ vacation cottage was severely damaged by an earthquake in a location that was a Presidentially Declared Disaster area.  They had AGI of $110,000 in 2018. Following is information related to the cottage:

Cost basis ............................ $95,000

FMV before casualty .......... 135,000

FMV after casualty ................ 20,000

The Rinaldis had insurance and received an $80,000 insurance settlement.

What is the amount of allowable casualty loss deduction for the Rinaldis in 2018 before the AGI and event limitation?

a. $ 3,900

b. $14,900

c. $15,000

d. $45,000