Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
shawnkaycamp
New Member

Is water damage from broken pipe considered casulty damage

I had a broken pipe in my kitchen I had to replace the floors and have work done. Is the amount of the deductible from insurance a deduction under personal property loss?
1 Reply
Marketstar
Level 7

Is water damage from broken pipe considered casulty damage

No, casualties are defined as tornadoes, earthquakes, hurricanes, auto accidents, etc. Gradual deterioration or lack of repair is not a casualty loss

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 experienced $2,000 in damages, and your Adjusted Gross Income is $50,000, you would not gain a tax benefit.

After deducting $100, you are left with $1,900  which is well below 10% of your Adjudged Gross Income which is $5,000..

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.6m
Discussions

Manage cookies
v