John's house suffered wind damage from a hurricane that the President declared a natural disaster. His gun collection (basis 10,000) and his collection of baseball (basis8,000) were damaged beyond repair. His gun collection only partially covered, and insurance pays 5,000. The FMV of the gun collection is20,000 and the FMV of the baseball cards is 16,000. John's adjusted AGI is40,000. What is the amount of John's deductible casualty loss?
1) $4,000
2) $8,900
3) $9,000
4) $13,000
5) $26,900

Q&A Education