Loss on deposits when a bank or other financial institution becomes insolvent or bankrupt.A disaster is an event that occurred in an area the president declares eligible for federal assistance. Government-ordered demolition or relocation of a home that’s unsafe to use because of a disaster.

Unusual event - not a day-to-day occurrenceĭeductible casualty losses can result from events like:.Unexpected event - ordinarily unanticipated and unintended.Sudden event - swift, rather than gradual or progressive.

What is a Casualty Loss?Ī casualty loss is damage, destruction, or property loss resulting from one of these identifiable events: The following rules are for years prior to 2018 and after 2025. The total of your casualty and theft losses on personal property must be more than 10% of your adjusted gross income (AGI) because only the amount above this limit is deductible. You’ll need to subtract $100 from each casualty loss of personal property. You will still use Form 4684 to figure your losses and report them on Form 1040, Schedule A.įor tax years prior to 2018 and after 2025, you can only deduct casualty losses not reimbursed or reimbursable by insurance or other means. For tax years 2018 through 2025, you can no longer claim casualty and theft losses on personal property as itemized deductions, unless your claim is caused by a federally declared disaster.

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