Olaf lives in the state of Minnesota. In May 2021, a tornado hit the area and damaged his home and automobile. Applicable information is as follows: Item Adjusted Basis $350,000 60,000 FMV before $500,000 40,000 FMV after $100,000 10,000 Insurance Proceeds $280,000 20,000 Home Auto Because of the extensive damage caused by the tornado, the President designated the area a Federal disaster area. Olaf and his wife, Anna, always file a joint return. Their 2020 tax return shows AGI of $180,000 and taxable income of $145,000. In 2021, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $225,000. Assume the taxpayers are in the 22% tax bracket in 2020 and the 24% tax bracket in 2021. Determine the amount of Olaf and Anna's loss and the year in which they should take the loss. Item Amount of Loss Home Auto Total loss Les statutory floor amount Loss before statutory % of AGI 00 000 Amount of loss on last year's return: Loss Less: statutory % of AGI Total loss Amount of loss on current year's return: Loss Less: statutory % of AGI Total loss Olaf and Anna should include the loss on the return, because the tax savings is greater