Tax Deductions:

Casualty and Theft Related Losses

Commonly Overlooked Deductions

You are generally eligible for tax deductions on anything that you own that is damaged, stolen or destroyed in an act of nature or an accident that you are not compensated for by insurance. There are some limitations on the amounts of the losses you may deduct. For example, the first $100 of any loss is not deductible. Also, you may only deduct casualty and theft losses when the total amount you lost (minus the first $100 per casualty) exceeds your adjusted gross income by 10%. However, casualty and theft deductions are not limited, as itemized deductions usually are, if your gross adjusted income exceeds $126,600 ($63,300 if you are married and filing separately.) Following is a list of commonly overlooked deductions related to casualty and theft losses.

  • Embezzled losses
  • Any damage by lightning
  • Government ordered demolition or relocation of a home due to a natural disaster
  • Damage or loss of trees and shrubs due to a blizzard or a fire