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I need help with the personal property loss section. We had our basement flood from ground water. We had to have a sump pump installed and water proofing done on our basement. We also had to have someone come and suck up the water. We have never had this
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I need help with the personal property loss section. We had our basement flood from ground water. We had to have a sump pump installed and water proofing done on our basement. We also had to have someone come and suck up the water. We have never had this
There is an itemized deduction for a casualty loss or a designated disaster area. This total loss amount (reduced by insurance payments, if any) is first limited by $100 and 10% of your Adjusted Gross Income (AGI- a subtotal on your return). It sounds like your loss might qualify for the deduction, but the event should be considered a casualty, theft or in a disaster area to qualify.
The IRS defines Casualty Loss as:
Casualty Losses - A casualty loss can result from the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption. A casualty doesn't include normal wear and tear or progressive deterioration.
To enter your loss, follow the steps at the FAQYou can learn more at the IRS here: https://www.irs.gov/taxtopics/tc515.html
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