Question

Casualty (non-federally declared disasters) loss - Tax Deductible?

Forum|Forum|3 years ago
January 25, 2023
1 reply
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I experienced a loss of $40,000 plus, difference between what the insurance covered and my out of pocket costs to replace, from a severe wind and hailstorm damage last year. Can I deduct my losses from Federal and State (Minnesota) income taxes? Casualty loss was not a federally declared disaster. Thank you.

Ask the Experts - Tax Law Changes - Jan 2023

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xmasbaby0

Employee

Sorry---unless you are in a federally declared disaster area, casualty losses are not deductible on your federal return.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-reform

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

JohnB5677

Although there are many losses as the result of Federal & State declared disaster areas, it is not the only loss that can be claimed.

A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event.
A theft occurs when someone steals your property.
A loss on deposits occurs when your financial institution becomes insolvent or bankrupt.

IRS Casualty, Disaster and Theft Losses

Losses are deductible in the year you sustain the loss

To Post to TurboTax

Go to Federal

Deductions and Credits
Scroll down to Other Deductions & Credits
Select Casualties and Thefts
Did you have anything damaged or stolen? - Yes
Description & Date
1. Property type
2. Drop down menu with types of disaster losses.
  1. Select a Federal or State disaster area
  2. Final selection None of the above apply.
3. Continue
This completes the posting.