Olaf lives in the state of minnesota. in 2019, a tornado hit the area and damaged his home and automobile. applicable information is as follows: item adjusted basis fmv before fmv after insurance proceeds home $350,000 $500,000 $100,000 $280,000 auto 60,000 40,000 10,000 20,000 because of the extensive damage caused by the tornado, the president designated the area a federal disaster area. olaf and his wife, anna, always file a joint return. their 2018 tax return shows agi of $180,000 and taxable income of $140,000. in 2019, their return shows agi of $300,000 and taxable income (exclusive of the casualty loss deduction) of $220,000. assume the taxpayers re in the 22% tax bracket in 2018 and the 24% tax bracket in 2019. determine the amount of olaf and anna's loss and the year in which they should take the loss. item amount of loss home $ auto total loss $ less: statutory floor amount loss before statutory % of agi $ amount of loss on last year's return: loss $ less: statutory % of agi total loss $ amount of loss on current year's return: loss $ less: statutory % of agi total loss $ olaf and anna should include the loss on the return, because the tax savings is greater.