Connor's house burns down in a wildfire. The wildfire was a federally-declared disaster. Connor is self-employed as an attorney. A business computer and a personal computer are destroyed. The business computer was worth $20,000 at the time of the fire (Connor originally paid $25,000 for it). The personal computer was worth $10,000 at the time of the fire (Connor originally paid $5,000 for it). Connor receives $1,000 in insurance proceeds for the business computer, but he receives nothing for the personal computer. Connor's AGI is $50,000 (before considering the business casualty loss). Asset Classification (Business or Personal) Adjusted Basis Fair Market Value Before Fair Market Value After Insurance Recovery Amount of Casualty Loss (before adjustment) Business Computer Personal Computer Total Deductible Casualty Loss