H is a private detective, while sleuthing this year, his car was stolen. The car which was used entirely for business, was worth $7000 and had an adjusted basis of $12,000. H received no insurance reimbursement for his car. Also this year, his office office was the victim of arson. The fire destroyed only a painting that had a basis of $1,500 and was worth $3000. He received $800 from his insurance company for the painting. H suffered yet another misfortune this year as his rental property was damaged by a flood, the first in the area in 70 years. Before the casualty, the property- which had greatly appreciated in value-was worth $90,000, and afterward was only $40,000. The rental property had an adjusted basis of $30,000. He received $20,000 from the insurance company, the maximum amount for which homes in a flood plain could be insured. Compute H's casualty loss deduction assuming his AGI is $30,000. Can a casualty loss create a net operating loss ?