Causalty Loss Question

Forum|Forum|3 years ago
April 19, 2023
1 reply
11 views

My house suffered a fire damage on 01/10/2022 from a fire spread from my neighbor's house. It took Allstate 14 months to settle the dwelling portion. They underpaid on materials and we have to come up with out-of-pocket expenses which cannot be calculated until the reconstruction is completed. In addition, after negotiating with the adjusters for 15 months, we are still not settled for the personal property losses. We could not establish the actual loss in 2022 but we should be able to come up with the figure either by the end of 2023 or the beginning of 2024. Can we still file for all the losses for tax year of 2023 or even 2024?

Not A Product Question

xmasbaby0

Level 15

Sorry----but since the tax laws changed for 2018 and beyond, casualty losses are not deductible on your federal tax return unless you are in a fedrerally declared disaster area.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

ShirlynW

Level 8

Casualty losses are deductible in the year you sustain the loss, which is generally in the year the casualty occurred.

The Tax Cut and Jobs Act suspended casualty losses until 2026. You may claim a casualty loss as an itemized deduction on Schedule A subject to a 2 percent floor. For property held by you for personal use, you must subtract $100 from each casualty or theft event that occurred during the year after you've subtracted any salvage value and any insurance or other reimbursement.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"