As a result of a storm, a tree fell on Leonard$$s house in April $2023,$ and he suffered $$5,000$ in damage. The

President did not declare the storm a Federally declared disaster. Leonard filed a claim with his insurance

company and reasonably expected the entire amount of the claim to be covered by his insurance company. In

March $2024,$ Leonard$$s insurance company paid him $$3,000$ and determined it did not owe him the remaining

$$2,000$ from his claim. The $$2,000$ personal casualty loss is sustained in $2024$ even though the storm occurred in

$2023.$ Thus, what amount of the loss is a Federal casualty loss and is deductible as a casualty loss under the Tax

Cuts and Jobs Act?

A$.$ $$0$

B$.$ $$500$

C$.$ $$1,000$

D$.$ $$2,000$