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Non-business Casualty And Theft Losses

Non-business casualty and theft losses

  • One of our clients ran into a case the other day where he had a roof leak and there was about $25,000 worth of damage. His insurance company would not provide him any reimbursement. The taxpayer did not know that he could actually take that as a loss on his tax returns
  • There is a specialty form which is for casualty, theft, and loss. Which means that you’ve lost the use of something, you’ve actually, physically lost it or it’s been damaged in a way that’s irreparable and you can take those losses against your tax return.
  • On a $25,000 loss, there is a little bit of a floor. So, taxpayer is able to take almost a $24,000 deduction against their tax return income. So, if you have a case where something’s been stolen or damage to the house or to a rental property, anything like that, you can get this loss for casualty, theft, and damage.

It’s Shauna the Tax Goddess, here for TaxGoddess.com. Can you tell that it’s tax season? I have a pen in my hair; that’s always the beginning of tax season, you can always tell. And today, I want to talk about casualty, theft, and losses.

One of our client ran into a case the other day where he had a roof leak and there was about $25,000 worth of damage. His insurance company would not provide him any reimbursement. Taxpayer did not know that he could actually take that as a loss on his tax returns. There is a specialty form which is for casualty, theft, and loss. Which means that you’ve lost the use of something, you’ve actually, physically lost it or it’s been damaged in a way that’s irreparable and you can take those losses against your tax return.

So, in this case, on a $25,000 loss, there is a little bit of a floor. So, taxpayer is able to take almost a $24,000 deduction against their tax return income. So, if you have a case where something’s been stolen or damage to the house or to a rental property, anything like that, you can get this loss for casualty, theft, and damage. So, make sure you’re checking with your CPA on that, make sure you’re getting the best deductions for it, and of course, if you need any help this time of year, don’t hesitate to give us a call at TaxGoddess.com.

Hope you guys are having a great day. We are doing our webinar on 9/28, so make sure you join us for that webinar if you head over to Tax Goddess on Facebook, or our sister page, Strategic Tax Coach on Facebook, the link for the webinar registration is there. So, we’ll see you guys later, hope you guys are having a great day, and we’ll talk to you soon.

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