n $2024,$ Grant$$s personal residence was completely destroyed by fire. Grant was insured for $100\%$ of his actual loss, and he received the insurance settlement. Grant had adjusted gross income, before considering the casualty item, of $$30,000.$ Pertinent data with respect to the residence follows:

Cost basis $$ $$280,000$

Value before casualty$250,000$

Value after casualty $0$

What is Grant$$s allowable casualty loss deduction?

$$0$

$,$ Not Selected

Incorrect answer:

$$6,500$

Correct Answer:

$$0$

$$6,900$

$,$ Not Selected

$$10,000$

$,$ Not Selected

$$80,000$