A hurricane (in a federally declared disaster are) destroys Kirk’s boat in 2020. The boat is worth $40,000, and Kirk paid $30,000 for the boat two years ago. The boat is a personal use asset. Kirk’s...

A hurricane (in a federally declared disaster are) destroys Kirk’s boat in 2020.  The boat is worth $40,000, and Kirk paid $30,000 for the boat two years ago.  The boat is a personal use asset.  Kirk’s AGI for 2020 is $40,000.

a.  What is the casualty deduction that Kirk can take as an itemized deduction in 2020?