Unless your loss occurred in a federally declared ...
TerryA
Level 7

Business & farm

Unless your loss occurred in a federally declared disaster area and has a FEMA designation number, personal casualty losses are no longer deductible on your federal return.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

Some states do not conform to the new federal rules so for state purposes such non-FEMA losses can still be entered as "This event does not qualify as a disaster casualty". This loss will be ignored by the federal program unless there is also a casualty gain in the return whereupon the non-FEMA loss will offset the gain. A nonconforming TT/State program will pick up the loss.

My list of the nonconforming states is AL, AR, CA, HI, IA, MN, MO, and NY. So if you are going to prepare one of those state returns then it could benefit you to enter it into the federal program.


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