Mary’s diamond ring was stolen in 2012. She originally paid $8,000 for the ring, but it was worth considerably more at the time of the theft. Mary filed an insurance claim for the stolen ring, but the claim was denied. Because the insurance claim was denied, Mary took a casualty loss for the stolen ring on her 2012 tax return. In 2012, Mary had AGI of $40,000. In 2013, the insurance company had a “change of heart” and sent Mary a check for $5,000 for the stolen ring. The per event floor is $100.