Deductions & credits

Casualty losses are only allowed if they are due to a federally declared disaster, like a flood or wild fire.

 

In addition, even under the old rules that were not limited to "declared" disasters, mold and long term damage were never allowable casualty losses because a casualty loss is a sudden, unexpected and unpredictable event.  Long term damage due to a slow leak that is not repaired is not a casualty.