Item 7

In 2019, the Jurics' pleasure boat was severely damaged by a hurricane in a region that was declared a federally disaster area. They had AGI of $110,000 in 2019. The following information relates to the craft:

Cost Basis	$	95,000
FMV before casualty		145,000
FMV after casualty		25,000

The Jurics had insurance and received an $80,000 insurance settlement. What is the allowable casualty loss deduction for the Jurics in 2019?

Multiple Choice

• $50,000.

• $15,000.

• $3,900.

• $3,000.