How they should report the loss including any special tax return forms that are required? What is the IRC?

Terry and Chris live in a townhome in southwest Austin and experienced quite a bit of property damage in the February 2021 Snovid weather event. Here is a list of the damages that occurred on their property:

1. A branch of a large oak tree fell iced over and fell on Chris Tesla which was parked outside their home. The Tesla originally cost $65,000 and the Tesla service division estimated that it would cost $30,000 to repair the car. Chris insurance company declared the car a total loss and reimbursed the couple $20,000. The Tesla was outside because they were using the garage to store equipment and appliances from Terrys restaurant business that had to close at the end of 2020 due to covid.