Given Grant's AGI of $30,000, we'll assume the loss occurred in the current tax year. Let's calculate the casualty loss deduction without insurance proceeds: Decrease in FMV: Minus: Insurance proceeds (assuming $0): $0 Minus: $100 floor: $100 (assuming a Federally declared disaster) Total deductible loss: Since Grant's AGI is $30,000, the 10% of AGI limitation is $3,000. Therefore, the deductible loss is further reduced to Grant's casualty loss deduction, considering a Federally declared disaster and no insurance settlement proceeds, would be It's important to note that casualty loss deductions can be complex, and the specific rules and limitations can vary based on individual circumstances and tax laws.