Mr.Rex had his car stolen this year.The car had $35,600 basis and a $22,000 FMV.Rex received a $16,500 reimbursement from his insurance company.Compute Rex's casualty loss resulting from the theft,subject to an aggregate 10% AGI floor.

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Rex's casualty loss is calculated as the lesser of the adjusted basis ($35,600) or the decrease in FMV ($22,000) minus insurance reimbursement ($16,500), resulting in a loss of $5,500. However, after applying the $100 per event reduction and the 10% AGI floor, the deductible loss is $5,400.

MrRex Had His Car Stolen This Year