casualty loss


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casualty loss

n. in taxation, loss due to damage which qualifies for a casualty loss tax deduction. It must be caused by a sudden, unexpected or unusual occurrence such as a storm, flood, fire, shipwreck, or earthquake, but would not include gradual damage from water seepage or erosion.

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The 2017 Republican tax bill included a provision repealing the casualty loss deduction except in declared disaster areas, which reversed the U.
The casualty loss is an itemized deduction claimed on Schedule A of Form 1040, so itemizing is necessary in order to take a casualty loss deduction.
If the casualty loss, net of insurance reimbursement, is extensive enough to offset all of the income on the return, whether the loss is claimed on the 2014 or 2015 return, and results in negative income, you may have what is referred to as a net operating loss (NOL).
If you suffered property loss as a result of a casualty, help might be available in the form of a casualty loss deduction through the Internal Revenue Service.
Natural disasters frequently cause damages that qualify for casualty loss deductions on taxpayers' federal income tax returns.
At a press conference, Bureau of Internal Revenue (BIR) Commissioner Kim Henares said establishment owners must meet certain conditions to be able to avail of casualty loss.
also explains how casualty loss deductions are calculated, covering the
247 (2011) (see "Tax Matters: Co-op Lessee Has Property Interest in Collapsed Wall" on page 73), allows the Tax Court to consider perhaps the most controversial aspect of casualty loss deductions-the meaning of "sudden, unexpected, or unusual.
A Casualty Loss Deduction is measured by the lesser of (a) reduction and fair market value of the property as a result of the event or (b) the purchase price of the property (plus any improvements and renovations to it subsequent to purchase).
Depending on the circumstances, losses on investments due to fraud may be treated as a casualty loss, as a capital loss, or as a return of capital.
2010-36 addressing casualty loss deductions under [section] 165(a) of the Internal Revenue Code (1) for taxpayers whose personal residences were found to contain defective Chinese drywall.
When a casualty loss occurs, there are a number of legal imperatives that have to be followed in order to protect your company's rights, and to preserve claims against potentially responsible third parties.