really on schedule A. line 15 applies only to federally declared disater or net qualified dsaster losses
- The Act defines a net disaster loss as the excess of “qualified disaster-related personal casualty losses” over personal casualty gains, as defined in Code Sec. 165(h)(3)(A). Qualified disaster-related personal casualty losses, in turn, are losses described in Code Sec. 165(c)(3) which arise:
- In the Hurricane Harvey disaster area (see below for the distinction between “areas” and “zones”) on or after Aug. 23, 2017, and which are attributable to Hurricane Harvey;
- In the Hurricane Irma disaster area on or after Sept. 4, 2017, and which are attributable to Hurricane Irma; or
- In the Hurricane Maria disaster area on or after Sept. 16, 2017, and which are attributable to Hurricane Maria. (Act Sec. 504(b)(3))
the there is 165(h)(2)(A)
(2)Net casualty loss allowed only to the extent it exceeds 10 percent of adjusted gross income
(A)In generalIf the personal casualty losses for any taxable year exceed the personal casualty gains for such taxable year, such losses shall be allowed for the taxable year only to the extent of the sum of—
(i)the amount of the personal casualty gains for the taxable year, plus
(ii)so much of such excess as exceeds 10 percent of the adjusted gross income of the individual.
however there is code sec 165(h)(4)(A) which says
(4)Special rules
(A)Personal casualty losses allowable in computing adjusted gross income to the extent of personal casualty gains
In any case to which paragraph (2)(A) applies, the deduction for personal casualty losses for any taxable year shall be treated as a deduction allowable in computing adjusted gross income to the extent such losses do not exceed the personal casualty gains for the taxable year
in other words personal casualty losses are no longer deductible
since she had not yet started a business when she got scammed, I don't think it's a business casualty loss
