To deduct a casualty or theft loss, you must itemize your deductions on Schedule A. The amount of your deduction is limited to the amount of the loss that exceeds 10% of your Adjusted Gross Income after a $100 deductible

As an example if you had a $2,000 casualty loss, and your Adjusted Gross Income is $40,000, you would not gain a tax benefit.

After deducting $100, you are left with $1,900 which is well below 10% of your Adjudged Gross Income-$4,000.