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Level 1
posted Jan 31, 2024 4:44:32 PM

Personal Casualty Loss

I had a damage loss to my primary residence in September 2022 due to hurricane Ian.  I didn’t settle the claim with my HO insurance company until December of 2023, and they did not issue payment to me until January of 2024. 

The rough #s are:

$90k in losses, I paid for out of pocket.

$13k deductible. $77k settlement ($25k paid to my attorney. $52k reimbursed to me by HO company.)

 

  • Can I write off the $38k in losses that were not covered by insurance, including the deductible and attorneys fees I paid to resolve the claim? What about interest losses? 
  • In what year can I deduct this loss?  Should I do it for 2023 because that’s when the loss was realized and the agreement was finalized, or can I wait until the 2024 season because that’s when I will be partially reimbursed?  2024 will benefit me since my AGI will be lower than in 2023.

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