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
For example if you
had a $5,000 property loss, and your Adjusted Gross Income is $40,000, your result
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 deduction would
therefore be $900.