Submitted By: someone
Answered: November 8, 2018 1:55 am

I own a rental property that was completely destroyed by fire. Insurance doesn’t fully cover the loss. Can I deduct the balance?

While casualty losses to personal use property in 2018 are not deductible unless the property is located in a federally-declared disaster area, this rule does not apply to investment property. If you itemize deductions, you can deduct the loss (Form 4684) without regard to the limits applicable to personal use losses: $100 per incident and 10% of adjusted gross income.

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Tax Glossary

Inclusion amount for leased cars

Based on an IRS table, an amount that reduces a business deduction taken for payments on an auto leased for a minimum of 30 days.

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