Jim had a car accident in 2020 in which his car was completely destroyed. At the time of the accident, the car had a fair market value of $32,000 and an adjusted basis of $40,000. Jim used the car 100% of the time for business use. He received an insurance recovery of 80% of the value of the car at the time of the accident. If Jim's AGI for the year is $56,000, determine his deductible loss on the car.

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