Olaf lives in the state of Minnesota. In May 2023, a tornado hit the area and damaged his home and automobile. Applicable information is as follows: 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 2022 tax return shows AGI of $180,000 and taxable income of $150,000. In 2023, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $245,000. Assume the taxpayers are in the 22% tax bracket in 2022 and the 24% tax bracket in 2023 . Determine the amount of Olaf and Anna's loss and the year in which they should take the loss. Olaf and Anna should include the loss on the return, because the tax savings is greater
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