Randy raises rare dogs as a hobby. It is an activity not engaged in for profit. The activity had gross income of $1,500 and operating expenses of $3,500 in calendar year 2021. In the same year, two of his dogs died due to an accident. -Randy had no insurance coverage for the dogs. The two dogs were valued by a dog appraiser at $1,700 prior to their demise. Research Checkpoint and identify and corectly cite the IRC paragraph that sheds light on whether Randy can claim the $1,700 loss as a deduction on his tax return.