Deductible casualty losses can result from a variety of causes such as car accidents, earthquakes, floods, fire, hurricanes, or vandalism.
Casualties that are not deductible losses include progressive deterioration such as termite or mold damage.
To deduct a casualty 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 $5,000 property loss, and your Adjusted Gross Income is $40,000, your tax benefit would be as follows
After deducting $100, you are left with $4, 900 which is $900 above 10% of your Adjusted Gross Income of $4,000.
Your tax benefit would therefore be $900
To claim a property loss
To enter educational expenses:
· Type in casualty loss in the search box, top right of your screen, click the magnifying
glass
· Click the casualty loss link in the search results
· Follow to prompts and online instructions
