Our House Caught Fire This Last July. Can We Claim A Loss On Our Income Tax Return?

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Our House Caught Fire This Last July. Can We Claim A Loss On Our Income Tax Return?

If you lose property through casualty or theft, you may be entitled to a tax deduction. A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual in nature. Some examples of casualties include car accidents, fires, and vandalism. If your property is covered by insurance, you cannot deduct a loss unless you file a timely insurance claim for reimbursement. To claim a casualty or theft loss, you must complete IRS Form 4684, Casualties and Thefts, and attach it to your return. A nonbusiness casualty or theft loss may be claimed only if you itemize deductions on Form 1040, Schedule A.

Other Tax Deductions FAQs

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