cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

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
Level 12

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..