15 49.0138 8.38624 1 4000 1 https://taxbot.com/blog 300 true 0
theme-sticky-logo-alt
casualty-loss-600

The Loss of Casualty Losses

Facebooktwitterpinterestlinkedinyoutubeinstagram
Follow Me

Sandy Botkin

Co-founder at Taxbot
Sandy is a CPA, Tax Attorney, and former IRS trainer. He has authored many helpful books on the subject of taxes, including 7 Simple Ways to Legally Avoid Paying Taxes ( Click Here ), Lower Your Taxes: Big Time ( Click Here ), and Real Estate Tax Secrets of the Rich ( Click Here ).
Sandy Botkin
Follow Me

Latest posts by Sandy Botkin (see all)


The new tax law eliminated the write off for any personal casualty losses. This involved uninsured losses from fire, theft, or sudden act of God such as an earthquake, tornado, flood or hurricane. The only exception is if it incurred in a presidentially declared disaster area. Thus, if your house is on fire and not part of a formally declared disaster area, you won’t be able to deduct any losses from that fire.

Moreover, even if you did qualify for the deduction, you would need to itemize to take the deduction. Finally, this personal deduction must be reduced by $100 and then by 10% of your adjusted gross income.

Bottom line: Update your insurance coverage on all of your property in order to avoid this problem. I should also note that there are some bills in Congress that, if passed, will allow a casualty loss deduction without having to itemize. If any of these bills pass, I will notify you in a post.


All content on this site is the property of Taxbot, LLC and/or Sandy Botkin. You may link to any article that you wish, or share via the social media buttons below. However, please do not copy articles or images for use on other sites without express written permission.


Facebooktwitterpinterestlinkedinmail
section529-600
Previous Post
Educate Yourself About Section 529 Savings
thoughts
Next Post
Sandy’s “Goal Setting” Thoughts
Sandy Botkin

Sandy is a CPA, Tax Attorney, and former IRS trainer. He has authored many helpful books on the subject of taxes, including 7 Simple Ways to Legally Avoid Paying Taxes ( Click Here ), Lower Your Taxes: Big Time ( Click Here ), and Real Estate Tax Secrets of the Rich ( Click Here ).

%d bloggers like this: