Taxpayer purchased a personal residence on December 29, 2018 for $266,000. The

fair market value of the residence was $280,000 when it was damaged by a flood on

June 10, 2019 that resulted from not turning off the bath water before leaving for

vacation. The fair market value of the residence after the flood was $240,000 and

insurance proceeds received in August 2019 totaled $15,000. What is the net amount

of casualty loss Taxpayer may deduct for 2019 as an itemized deduction if Taxpayer's

adjusted gross income is $120,000?

a. $0

b.$25,000

c.$24,900

d.$8,500

e.$12,900