I doubt the IRS would consider that a casualty loss at all since insect damage is gradual and not sudden like an earthquake or flood.
Per the IRS
Quote:
A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.
-A sudden event is one that is swift, not gradual or progressive.
-An unexpected event is one that is ordinarily unanticipated and unintended.
-An unusual event is one that isn't a day-to-day occurrence and that isn't typical of the activity in which you were engaged.
End quote
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
