Casualty Losses. Tony is a carpenter who owns his own furniture manufacturing business.

During the current year, a tornado $($a federally declared disaster$)$ damaged several pieces of

equipment and destroyed his delivery truck and his personal automobile, which he often

kept in the workshop garage. The asset descriptions and related values are as follows:

Asset

FMV

Before Casualty

FMV

After Casualty

Cost to

Repair$/$Replace

Adjusted

Basis

Insurance

Proceeds

Equipment A $$12,300$ $$4,000$ $ $8,700$ $ $9,000$ $ $3,700$

Equipment B $8,10009,0003,0007,800$

Equipment C Not Available Not Available $13,80015,30011,400$

Delivery Truck $18,000032,00017,50016,000$

Automobile $15,000012,00028,00012,000$

Although he could not obtain its fair market value after the casualties, Tony decided to

repair rather than replace Equipment C$.$

Before considering any deductions because of these casualties, Tony$$s AGI is $$80,000.$

What deductions may Tony take relating to these losses?