Is it possible to take a capital loss for a YACHT / house boat which was damaged / totaled by a storm? Similar to losing a house in a hurricane that not insured?

[herbjf-gmail-com]

The house boat was totaled in a hurricane, there was no insurance policy covering it.

[DianeW777]

Your yacht is a casualty loss as opposed to a capital loss for tax purposes. You may be entitled to a deduction for your personal casualty using itemized deductions.  

When you have items that are lost or damaged as a direct result of a natural disaster, and you live in a federally declared disaster area, you may be able to take a tax deduction for the value of the property that's not covered by your insurance.  The lost or damaged items can be personal property, business property or investment property.

• What if I have property that was lost or damaged?
• 2021 FEMA Disaster Areas
• IRS Topic 515

[herbjf-gmail-com]

Does the Casualty Loss exemption exist for Tax year 2019? I'm considering if I should amend that return to see if it lowers my tax burden. I'm live in NJ, so the SALT and Property taxes eat up much of the max deduction, just wondering if the Casualty Loss is something that could make a difference for 2019, and subsequent years?

[AmyC]

Yes disaster exemptions exist for 2019 and could make a difference on your return. For tax years 2018-2025, if attributable to a federally declared disaster area and more than 10% of your AGI+$100, then you would qualify for a deduction. You can amend your 2019 return and add form 4684. You would mail the new sch A and 4684 along with any other changed forms and the 1040x.

To amend:

• Save a copy of the original return before doing an amended return.
• See how to file an amended return.
• Follow your amend at track an amended return 
• See I need to amend my state return.
• I recommend mailing with tracking to ensure safe delivery.

See IRS Disaster resource.