To deduct a casualty
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 $2,500 property loss (or deductible paid), and your Adjusted Gross Income is $40,000, your result
would be as follows:
After deducting $100,
you are left with $2,400 which is well below 10% of your Adjusted Gross Income
of $4,000.
Your would
therefore have no deduction.
To deduct a casualty
loss:
·
Type in casualty loss in the search box, top right of your screen, click
the
magnifying glass
·
Click the jump to casualty
loss link in the search results
·
Follow to prompts and online instructions
