Yes, if the damage resulted from a weather event like a hurricane or tornado. If it was due to progressive deterioration from weather, it is not deductible. When you lose an item due to an accident, theft, or act of nature, you may have a tax deduction for the value of the property that is not covered by your insurance. Deductible casualty losses can result from a variety of causes such as car accidents, earthquakes, floods, fire, hurricanes, or vandalism.
Casualties that are not deductible losses include progressive deterioration such as termite or moth damage. Also the loss of a personal belonging, like a ring that is dropped in the garbage disposal, is not deductible.
To enter into TurboTax, jump to the entry area for casualty loss:
(To do this, sign in to TurboTax and select the blue Take me to my return button.)
- Search for "casualty loss" and then click the "Jump to" link in the search results.
- On the Casualties and Thefts (or Stolen or Damaged Items) screen, select Yes.
- Answer the interview questions describing your event.
- When you complete the event and reach the Property Summary screen, you can enter any additional property losses by selecting the Add a Property button.