1 John Smith owns a beach house in Galveston. In morning of March 1, 2017 he goes to beach to take swim. There a thief stole his watch costing 15,000 Fair Market Value on March 1, 2017 was $4000 In the evening his beach house got burnt. His cost on the house was $140,000 Fair market value before the fire was 150,000 Insurance company paid $50,000. His adjusted gross income for 2017 was $385,000. Calculate Casulty loss for 2017 Assume that event happened in 2018, how much loss is deductible