Casualty and Theft Losses for Personal Property
Casualty and theft losses on personal-use property can be claimed on your tax return if you have damage from unexpected events such as wildfires, hurricanes, tornadoes, or from a burglary or theft. You need to calculate the loss to see if it is deductible. Figure the decrease in value by taking the lower of fair market value before the casualty or the adjusted basis and comparing it to the fair market value after the casualty. This loss, minus any insurance reimbursements, is your actual loss. Subtract $100 for each separate casualty or theft that occurred during the year. The total of all casualty and theft losses must be further reduced by 10% of the taxpayer’s adjusted gross income to arrive at the deduction which will be reported on Schedule A, Itemized Deductions.