How to do Casualty losses

[Kadian · Accepted solution]

To enter casualty losses in your return, this done through the Casualty and Theft deduction. This deduction covers property that’s damaged as a result of a disaster, such as a storm, flood, fire, car accident, or similar event, and also covers stolen property. Property includes anything you own.

To enter this in TurboTax:

1. Got to the "Federal Taxes" tab
2. Click on "Deductions & Credit" 
3. Scroll down to "Other Deductions and Credits" and click on "show more" to the right of it
4. Click "Start" next to "Casualties and Thefts" continue to follow the onscreen guide. 

Note: For information on determining the basis of your business or income-producing property, refer to IRS Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook.

[user314]

My home water heater burst in 2019 causing a lot of water damage to my home.  Does this count as a disaster for the casualty loss tax deduction? Thank you.

[DoninGA]

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@user314 wrote:

My home water heater burst in 2019 causing a lot of water damage to my home.  Does this count as a disaster for the casualty loss tax deduction? Thank you.

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Sorry, no.  That cannot be claimed as a casualty loss on a federal tax return.  Only if you live in a designated Federally declared disaster area and the casualty was caused by the disaster.

[Esther johnson]

ok I will follow guidelines.