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Mary Contrary runs a nursery, Mary Contrary's Garden, out of her home. She uses the greenhouse, which is attached to her home, to grow the plants that she sells and to grow her personal garden plants. The business use of the nursery is 60%. On August 12, an overly conscientious employee left the nursery roof open overnight because the plants looked thirsty and it was supposed to rain. The nursery was flooded and the damage to the nursery cost $40,000 to repair. Mary originally paid $60,000 for the nursery addition to the house and the FMV of the greenhouse before the flood was $100,000. She has properly taken $5,000 of depreciation on the greenhouse. The insurance company reimbursed Mary nothing because it was caused by negligence. However, the employee, who is independently wealthy, reimbursed her $24,000. Mary's adjusted gross income before any casualties is $70,000.
What is the amount of Mary's casualty loss deduction and how is it deducted?