Level 6

Casualty loss NOT due to a federal disaster

Forum|Forum|1 year ago
October 6, 2024
1 reply
9 views

Hello, client had substantial loss due to flooding that was not a federally declared disaster. Can this be claimed as a casualty loss or does it have to be a federally declared disaster?

Tax Talk

IRonMaN

Level 15

Topic no. 515, Casualty, disaster, and theft losses

Personal casualty losses are losses from casualty, disaster, and theft that are not connected to a trade or business, or a transaction entered into for profit. Generally, if the loss is caused by a federally declared disaster, you may deduct personal casualty losses relating to your home, household items, and vehicles on your federal income tax return. For tax years 2018 through 2025, personal casualty losses are otherwise not deductible. A theft loss deduction is generally available, however, if the loss is due to theft related to a transaction entered into for profit. You may not deduct casualty and theft losses covered by insurance, unless you file a timely claim for reimbursement, and you reduce the loss by the amount of any reimbursement or expected reimbursement.

Slava Ukraini!

BobKamman

Level 15

@IRonMaN That's the law. Now tell us who voted for it and who signed it back in 2017.

IRonMaN

Level 15

That was a long time ago. I don’t recall who signed it, but I believe it was signed with a sharpie that was supposed to be good at predicting the path of hurricanes.

Slava Ukraini!

Topic no. 515, Casualty, disaster, and theft losses

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