Casualties & Theft NOT WORKING

Forum|Forum|3 years ago
February 19, 2023
3 replies
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I've spent an hour trying to enter a Casualty event. I fill all the fields out, click DONE and the entry in my schedule C list shows $0.

I've tried to do it using Forms View, No JOY, Still comes up $0.

I think this is a BUG - the input does not update when returning to the Deductions page.

Either that or I've gone crazy.

Help?!?

TurboTax Home & Biz Windows

Best answer by dmertz

Your casualty loss is not deductible on your 2022 tax return.

For tax years 2018 through 2025, only casualty losses in a federally declared disaster area and associated with that disaster are deductible.

For tax years 2018 through 2025, only theft losses associated with a Ponzi scheme are deductible.

https://www.irs.gov/pub/irs-pdf/p547.pdf

mjlippold3798Author

Sorry, I meant Schedule A

mglauner

When you enter your Casualty Event, remember that there's a $500 deductible to account for.

Let's say you needed a new roof and the cost to replace it was $5,000. Enter the FMV before the Event as $5,000 and the FMV after the Event as $0.

If your insurance paid you $2,000, you should end up with a Casualty Loss of $2,500 ($5,000 less $2,000 insurance less $500 deductible). The difference between the FMV before/after the event is your loss.

Click this link for more info on Reporting a Casualty Loss.

mjlippold3798Author

Yeah, but still not working. A Dump Truck backed into our Gate & Gate column. Gate & Column Cost us $10,000 to originally install. It cost $5000 to repair (using what was leftover, salvageable, and bought new). Minus the $500 deductible SHOULD equal $4500.

Insurance paid ZERO (high deductible).

So I fully expect the Casualty deduction to show as $4500, instead I get ZERO.

Thanks

Mike9241

a business casualty loss does not show up on schedule C. it carries to form 4797 from there it may flow to schedule 1 line 4