Casualty Loss due to Camp Fire

Forum|Forum|6 years ago
February 15, 2020
1 reply
0 views

In my 2018 tax return I deducted casualty loss of $30,627, which was limited by 10% adjusted gross income back to $21,233. Can I carry over the $9394 to my 2019 return?

Deduction

Best answer by DavidS127

No, the 10% limitation is a "threshold" and anything less than that "10% of AGI" is not allowed as a deduction in any year.

Note that "Qualified Disaster Losses" are not subject to the 10% AGI limitation. So, if your Camp Fire loss was in an area determined by the President to warrant assistance by the federal government under the Stafford Act, the 10% AGI limitation doesn't apply. If that is the case with your disaster loss, you can amend your 2018 tax return to pick up the "less than 10% amount".

Click here for more help for California wildfire victims.

DavidS127Answer

No, the 10% limitation is a "threshold" and anything less than that "10% of AGI" is not allowed as a deduction in any year.

Note that "Qualified Disaster Losses" are not subject to the 10% AGI limitation. So, if your Camp Fire loss was in an area determined by the President to warrant assistance by the federal government under the Stafford Act, the 10% AGI limitation doesn't apply. If that is the case with your disaster loss, you can amend your 2018 tax return to pick up the "less than 10% amount".

Click here for more help for California wildfire victims.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"