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Casualty Loss Criteria

If the damage wasn't unexpected and unusual, the loss isn't deductible as a casualty loss.

You can typically deduct (with some exceptions) losses related to the following: car accidents, earthquakes, fires, floods, government ordered demolition of a home that is unsafe, because of a disaster, mine cave-ins, shipwrecks, sonic booms, storms (think of hurricanes and tornadoes), terrorist attacks, vandalism and volcanic eruptions.

You can’t deduct losses caused by accidental breakage, your pet destroying item(s), arson, at-fault car accidents or progressive deterioration.

Remember, you’ll need to subtract $100 from each casualty loss of your personal property. The loss must also be reduced by any salvage value and/or reimbursement you receive or expect to receive from insurance, federal and/or state relief, etc.

See IRS Publication 547 for exceptions and more details. 

Still have questions? Contact member support

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