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