It
would be a casualty loss which may or may not be a tax benefit.
A
personal casualty loss (including a theft) is deductible if you itemize
deductions. The measure of a casualty loss is the fair market value before the
casualty, less the fair market value after, less any insurance proceeds. The
decrease in market value can be estimated by repair costs that restore the
property to its prior condition.
If
deductible, the loss must first be reduced by $100, and any remainder is
deductible to the extent it exceeds 10% of your adjusted gross income. As
examples, if your loss is -
- 500, you
have no deductible loss if your adjusted gross income is over $4,000
- 1,000, you
have no deductible loss if your adjusted gross income is over $9,000
Tax topic 515 has more
information and links regarding casualty losses.
Casualty losses are under the deductions and credits tab
under the very last item ("Other Deductions and Credits.")
