Can I deduct for casualty loss if a sudden windstorm exposes faulty materials in my house? We paid out of pocket to replace the flashing, including stucco.

[MarilynG · Accepted solution]

Yes, you can deduct your costs as a casualty loss.

Here's more info to help you:

https://ttlc.intuit.com/replies/3301959

[25kona]

Regarding the exterior stucco and flashing repairs: My insurance claim cited the flashing as the cause of the inside property loss covered by insurance. I can’t prove that the storm damaged the flashing, it was probably already bad, but I had no way of knowing that. The stucco had to be removed to access the flashing. However, the wind/rain storm was certainly uncommon for our region and was documented on multiple government storm sites. Is the casualty loss still applicable with these extra facts? Thanks.

[MarilynG]

Yes, you can claim the portion of the casualty loss you paid yourself, which was part of the total repair needed. Remember this is an itemized deduction on Sch A and $100 is subtracted initially. Total must be more than 10% of AGI.