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What if I have property that was lost or damaged (a casualty loss)?

SOLVEDby TurboTax1713Updated 3 weeks ago

When you have items that are lost or damaged as a direct result of a natural disaster, and you live in a federally declared disaster area, you may be able to take a tax deduction for the value of the property that's not covered by your insurance.

The lost or damaged items can be personal property, business property or investment property.

Not eligible for the deduction:

  • Property with progressive deterioration such as termite or moth damage.
  • Stolen items.
  • Accidental losses of personal items, such as a ring dropped down the sink.
  • Property loss or damage that’s not the direct result of a natural disaster as described above. (This restriction started in 2018 and applies through 2025.)

In TurboTax, jump to the entry area for casualty loss:

  1. Open your return. (To do this, sign in to TurboTax and open or continue your return.)
  2. Search for casualty loss and then click the Jump to link in the search results.
  3. On the Did you have anything damaged or stolen in 2022? screen, select Yes.
  4. Answer the interview questions describing your event.

When you complete the event and reach the Property Summary screen, you can enter any additional property losses by selecting the Add a Property button.

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