33. LO.3,4,8 Olaf lives in the state of Minnesota. In 2019, a tornado hit the area and damaged his home and automobile. Applicable information is as follows: Adjusted Basis Insurance Proceeds Item FMV before FMV after Home Auto $350,000 60,000 $500,000 40,000 $100,000 10,000 $280,000 20,000 Because of the extensive damage caused by the tornado, the President designated the area a Federal disaster area. Olaf and his wife, Anna, always file a joint return. Their 2018 tax return shows AGI of $180,000 and taxable income of $140,000. In 2019, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $220,000. Determine the amount of Olaf and Anna's loss and the year in which they should take the loss