No. Disaster losses can be generally claimed in the year they occur or you may also claim the loss in the prior year by amending your prior year return. However, you cannot spread it over multiple years. It does not act like a carry forward credit.
When to deduct the loss. You must generally deduct a casualty loss in the disaster year. However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can elect to deduct that loss on your return or amended return for the tax year immediately preceding the disaster year. If you make this election, the loss is treated as having occurred in the preceding year. A list of areas warranting public or individual assistance (or both) is available at the FEMA website at FEMA.gov/Disaster.
You must make the election to take your casualty loss for the disaster in the preceding year on or before the date that is 6 months after the regular due date for filing your original return (without extensions) for the disaster year. If you are a calendar year taxpayer, you have until October 15, 2025, to amend your 2023 tax return to claim a casualty loss that occurred during 2024.
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