The Ottomans own a winter cabin in Durango, Colorado. Theypurchased the cabin in 2004 for $65,000. During 2018, a blizzard, afederally-declared disaster, partially destroys the cabin. The fairmarket value of the cabin after the blizzard is $70,000. Theinsurance company estimates that the cost of repairing the cabinwill be $40,000. The insurance company will reimburse the Ottomansfor 70% of the repair cost. What can they deduct as a casualty lossif their adjusted gross income for the year is $80,000?