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Reynaldo and Sonya, a married couple, had flood damage in their home due to a faulty water heater during 2016, which totally ruined the furniture

Reynaldo and Sonya, a married couple, had flood damage in their home due to a faulty water heater during 2016, which totally ruined the furniture that was stored in their garage. The following items were completely destroyed and not salvageable.

Damaged Items Fair Market Value Just Prior to Damage Original Item Cost (Basis)
Antique poster bed $ 6,000 $ 5,000
Pool table 7,000 11,000
Flat screen TV 700 2,500

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 2016 was $40,000. What is the amount of casualty loss that Reynaldo and Sonya can claim on their joint return for 2016?

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