During 2022, Pam incurred the following casualty losses:

All of the items were destroyed in the same casualty, which resulted from a federally declared disaster. Before considering the casualty items, Pam reports business income of $80,000, qualified residential interest of $6,000 property taxes on her personal residence of $2,000, and charitable contributions of $4,000. Compute Pam’s taxable income for 2022. Pam is single.

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Asset Business 1 Business 2 Business 3 Personal 1 Personal 2 Personal 3 FMV Before $18,000 25,000 20,000 12,000 8,000 9,000 FMV After $ 0 10,000 0 0 5,000 0 Basis $15,000 8,000 18,000 20,000 10,000 6,000 Insurance $ 4,000 3,000 19,000 2,000 0 8,000