Tax Disaster Loss Deduction Guide for Casualty Loss (2026)
Claim tax disaster loss: casualty deduction, FEMA disaster, insurance reimbursement, and property damage tax relief.
Summary
Disaster losses may be deductible. This guide explains casualty loss, FEMA declarations, and claiming procedures.
Key Steps
- 1Federally declared disaster: casualty loss deductible for federal disasters.
- 2Calculate loss: FMV before disaster minus FMV after, minus insurance.
- 3$100 rule: subtract $100 from each casualty loss.
- 410% AGI floor: total losses must exceed 10% of AGI.
- 5Timing choice: deduct in year of loss or prior year for faster refund.