Reynaldo and Sonya, a married couple, had flood damage in their home due to a dam break near their home in 2020, 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	FMV Just Prior to Damage	Original Item Cost (Basis)
Antique poster bed	$ 7,200	$ 5,600
Pool table	7,750	12,650
Flat-screen TV	1,000	3,550

Required:

Their homeowner's insurance policy had a $10,810 deductible for the personal property, which was deducted from their insurance reimbursement of $14,350, resulting in a net payment of $3,540. Their AGI for 2020 was $40,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2020?

Casualty Loss deduction: