Mold casuality loss

Forum|Forum|7 years ago
June 4, 2019
8 replies
46 views

We recently found out due to a leak in our roof that a big storm a month before ripped shingles off our house. The water ran down to bathroom and kitchen. My wife and daughter started coughing a few weeks before we put our claim in with insurance. The remediation cost 45k and we had to throw away most of our belongings due to my wife and daughter being allergic. It was not a specific hurricane that caused this but our area had 50-60mph winds a few weeks before the leak was discovered. Will this be suitable to claim as a loss casuaslity since it was declared by insurance as water damage? We sustained a loss over 89K?

two different CPA's in our area gave us two completely different answers.

Lisa995

Alumni - Champ

If you suffered damage to your home or personal property last year, you may be able to deduct these “casualty” losses on your 2017 federal income tax return.

For 2018 through 2025, however, the Tax Cuts and Jobs Act suspends this deduction except for losses due to an event officially declared a disaster by the President.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

collins1227Author

Level 2

Yes I am aware of that but was more into being able to claim mold part. How can I prove it wasn't part of normal wear on a home or deteriation? How do you prove it was sudden?

Critter

Level 15

I go with no since it doesn't meet the definition of a casualty loss ... and especially if this is in 2018 due to the new tax law changes where it has to be in a federally declared disaster area.

A casualty loss is a type of tax loss that is a sudden, unexpected, or unusual event. Damage or loss resulting from progressive deterioration of property through a steadily operating cause would not be a casualty loss. “Other casualty” are events similar to “fire, storm, or shipwreck.”

Casualty loss - Wikipedia

https://en.wikipedia.org/wiki/Casualty_loss