Total loss in apartment fire

[miller-c-rachel]

This year there was a fire in my apartment building in which I lost everything. I had to itemize everything out for my insurance company. My losses were approximately 3 times the amount that my insurance policy covered. Losses were $60,000; Insurance claim paid $25,000. Is this worth itemizing and claiming on my taxes?

[Opus 17]

That depends on your overall tax situation.  Your casualty loss is the difference between your cost basis in the items (usually, but not always, what you paid for them) and the final value or reimbursement.  When you claim the loss you first subtract a deductible equal to 10% of your gross income.  Then subtract a second $100 deductible.  Then the rest is a schedule A itemized deduction.  So your final benefit will depend on your overall income and your other deductions.  It certainly will not hurt to enter the information in turbotax and let the program figure it out.

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