Wes Owned a Business Which Was Destroyed by Fire in May

question 25

Essay

Wes owned a business which was destroyed by fire in May 2016. Details of his losses follow:
$$\begin{array} { c c c c c } & \text { Adj. } & \text { FMV } & \text { FMV } & \text { Insurance } \\\text { Asset } & \text { Easis } & \text { Blefore } & \text { After } & \text { Reimbursement } \\\text { A } & \$ 1,000 & \$ 2,000 & \$ 0 & \$ 2,000 \\\mathrm { E } & 15,000 & 10,000 &3 , 0 0 0 & 2,000 \\\mathrm { C } & 2,400 & 5,000 & 2,500 & 1,000\end{array}$$ His AGI without consideration of the casualty is $45,000.
What is Wes's net casualty loss deduction for 2016?

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