casualty loss

Forum|Forum|3 years ago
February 2, 2023
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Anonymous_

Level 15

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DMarkM1

Level 15

Generally, personal casualty losses of an individual, sustained in a tax year beginning after 2017, are deductible only to the extent that the losses are attributable to a federally declared disaster.

If that is the case typically you may deduct casualty losses related to your home, household items, and vehicles.

You cannot claim 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.

Click here for link with great information. For more detailed information you can check this link for IRS Publication 547.

Here's how to enter this in TurboTax:

"Deductions and Credits"
"Other Deductions and Credits"
"Disasters, thefts..."
"Federally Declared Disaster" link
FEMA Link
Use the Search function there to find your disaster code; For example, Florida's Hurricane Nicole would be DR-4680-FL
Go back to tax return and click "Yes"
Enter description, date and property type
Select the proper category usually Federally declared disaster (not qualified)
DR or whatever you found that applies
The full code for example DR-4680
Continue with property loss information