Mr. and Mrs. Marcum live in southern California in an area devastated by wildfires that the President designated a federally declared disaster. Because of fire damage, the Marcums had to replace the roof of their home at a cost of $55,000. Their homeowners insurance reimbursed them for only $32,500 of the cost. The Marcums $22,500 unreimbursed loss was their only casualty loss this year. Assume the taxable year is 2022.

Required:

Compute their deductible casualty loss if their AGI is $163,000. Assume that the fire that damaged the Marcums' roof was attributable to faulty electrical wiring in their attic?