Elvis and Greta are married taxpayers who file a joint income tax return for 2009. On their 2009 income tax return, they have adjusted gross income of

$181,000 and total itemized deductions of $12,000. The itemized deductions consist of $5,000 in state income taxes and a $7,000 casualty loss (after the

$500 floor and after applying the 10 percent of adjusted gross income limitation).

Of the $

12,000 of itemized deductions, what amount is allowed as a deduction in calculating taxable income on Elvis and Greta’s 2009 federal income tax return?