To deduct a casualty loss such as damage to your home, 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 $10,000 property loss,
and your Adjusted Gross Income is $40,000, your result would be as follows
After deducting $100, you are left with $9,900 which is $5,900 above 10% of your Adjusted Gross Income of $4,000.
Your deduction would therefore be $5,900
To claim a property loss
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
