Casualty Loss due to Camp Fire

[zeke_author]

In my 2018 tax return I deducted casualty loss of $30,627, which was limited by 10% adjusted gross income back to $21,233. Can I carry over the $9394 to my 2019 return?

[DavidS127 · Accepted solution]

No, the 10% limitation is a "threshold" and anything less than that "10% of AGI" is not allowed as a deduction in any year.

Note that "Qualified Disaster Losses" are not subject to the 10% AGI limitation.  So, if your Camp Fire loss was in an area determined by the President to warrant assistance by the federal government under the Stafford Act, the 10% AGI limitation doesn't apply. If that is the case with your disaster loss, you can amend your 2018 tax return to pick up the "less than 10% amount".

Click here for more help for California wildfire victims.

[zeke_author]

Thank you so much. I guess TurboTax will have to upgrade its software
there. I submitted an amended return today. It will save me $1128!