Beginning January 2018 - December 2025, Personal casualty losses are nondeductible unless attributable to a Federally Declared Disaster. So a Taxpayer who suffers a personal casualty loss from a disaster declared by the President under Section 401 of the 'Robert T. Stafford Disaster Relief and Emergency Assistance Act' will be able to claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%-of-AGI limitations.

For a taxpayer that has personal casualty gains, personal casualty losses can still be offset against those gains, even if the losses aren't incurred in a Federally Declared Disaster.

Program Details:


To qualify for Personal Casualty Losses under these guidelines, follow these steps:
  1. Go to Screen 17, Dispositions (Schedule D, 4797, etc.).
  2. Scroll down to the Casualties and Thefts (4868) section.
  3. Enter your Description (fire, robbery, etc.) (code 802).
  4. Enter a '1' in the field 1=personal, 2=business, 3=income, 4=employee (code 86).
  5. From the selection options in the field Disaster loss (Ctrl+T) (code 135) select 2018 federal declared disaster.

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Other Articles to Try:

2018 Individual and Business Tax Reform - Summary of Changes (Click Here to view)