topic End of Year Rental Casualty in Deductions & credits

End of Year Rental Casualty

jamesrob0723 — Mon, 23 Feb 2026 11:00:05 GMT

I had a casualty in DEC of 2021(~$10,000). The only expense at the time was replacement of an appliance and drying the water damaged areas. The Insurance payout and repairs took place in 2022. The only rental deduction on the 2021 tax return was the cost of drying the water damaged area. The rental is house (structure) is completely depreciated out.

Do I amend the 2021 return to include the entire casualty or do I include it on the 2022 return? Should it span both years (in which I would need to amend the 2021 to include appliance depreciation)?

Thanks in advance.

Re: End of Year Rental Casualty

Anonymous_ — Mon, 09 Jan 2023 15:46:53 GMT

See https://www.irs.gov/taxtopics/tc515

I will also see what @Mike9241 thinks.

Re: End of Year Rental Casualty

Carl — Mon, 09 Jan 2023 17:27:59 GMT

The only rental deduction on the 2021 tax return was the cost of drying the water damaged area.

I would assume those expenses were reported on your 2021 tax return.

The Insurance payout and repairs took place in 2022

That would be reported on the 2022 tax return then.

Re: End of Year Rental Casualty

Mike9241 — Mon, 09 Jan 2023 17:44:25 GMT

report in 2022

Re: End of Year Rental Casualty

jamesrob0723 — Tue, 10 Jan 2023 11:57:39 GMT

Thank you.