Nondeductible Casualty Losses
What casualty losses are non tax deductible casualty
Losses from progressive deterioration
Nondeductible casualty losses are losses
that result from progressive deterioration of your property
rather than from a sudden event.
Some examples of casualty losses that
are not tax deductible
The followings are some examples of
casualty losses that are not tax deductible.
the weakening of a building due to normal wind
and weather conditions,
damage caused by termites and moths,
damage to trees and shrubs from drought or from
a fungus, insects, worms or similar pests
If your plans and shrubs were destroyed
by an unusual and unexpected infestation of beetles, for
example, you can claim the casualty loss tax deduction
because this loss was unexpected and sudden.
Other non tax deductible losses (that
seem like casualty losses)
In addition to the losses from progressive
deterioration, there are other causes of damage or destruction
that do not result in a deductible casualty loss. These include
damage caused by:
Accidentally breaking articles such as china during
A family pet
A fire that is willfully set
A car accident caused by your willful negligence or
willful act or the willful negligence or willful
act of someone acting for you.
Examples: if you partook in a race and
destroyed your car, your loss is a result of a willful act and
cannot be a casualty loss deduction. However, if you
accidentally turn the wrong way onto a one way street and had
an accident, your loss may be claimed as a casualty loss.