Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2019, which was declared a federally designated disaster area, which totally ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable.

Their homeowner?s insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2019 was $50,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2019?

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Fair Market ValueJust Prior to OriginalItem Cost (Basis) Damaged Items Damage Antique poster $6,000 $5,000 bed Pool table 11,000 7,000 2,500 Flat screen TV 700