Margaret's house was damaged during a hurricane during 2019. Due to the severity of the storm and the damages to the city, it was declared a Federal Disaster Area. The damages totaled $150,000 of which $115,000 was covered by insurance. The adjusted basis of the house was $125,000 and Margaret, who is single had an AGI of $80,000. Her other itemized deductions other than any casualty loss totaled $10,500. During 2020, after pursuing the insurance company, Margaret was able to obtain an additional $8,000 of insurance proceeds. How much of the proceeds are taxable during 2020?

$0 $200 $1900 $8,000