Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2022, which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable: Damaged Items Antique poster bed Pool table Large flat-screen TV FMV Just Prior to Damage $ 6,000 7,000 700 Casualty loss deduction Original Item Cost (Basis) $5,000 11,000 2,500 Required: Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resulting in a net payment of $2,700. Their AGI for 2022 was $60,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2022?

Reynaido and Sonya, a mamed couple, had flood damage in their home due to a dam break near their home in 2022 , which was declared a Federally Designated Disaster Area. The flood damage ruined the furniture that was stored in their garage. The following items were completely destroyed and not saivageable: Required: Their homeowner's insurance policy had a $10,000 deductible for the personal property, which was deducted from their insurance reimbursement of $12,700, resuiting in a net payment of $2.700. Their AG for 2022 was $60,000. What is the amount of castaity loss that Reynaldo and Sonya can claim on their joint retum for 2022