To deduct a casualty or theft loss,
you must itemize your deductions on Schedule A. The amount of your deduction is
limited to the amount of the loss that exceeds 10% of your Adjusted Gross Income
after a $100 deductible
As an
example if you had a $2,000 casualty loss, and your Adjusted Gross Income is $40,000,
you would not gain a tax benefit.
After deducting $100, you are left
with $1,900 which is well below 10% of your Adjudged Gross Income-$4,000.
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