April 28, 2023 2:41 am

Proof of Storm Damage Required for a Loss Deduction

Prior to 2018, individuals who sustained casualty losses to their homes and other personal-use property could take an itemized casualty loss deduction. From 2018 through 2025, losses are allowed only if they result from a federally-declared disaster. In any case—including within current federally-declared disaster areas, to claim a loss, proof that the property suffered from a storm or other casualty event is essential. One couple claimed that a 2017 storm severely damaged their home and a boat moored at it. They supposedly took a photo of the damage on a smart phone to meet the proof-of-loss requirement, but claimed the photos were lost with a software update to the phone. Absent any other proof (a photo a year later wouldn’t do), no casualty loss deduction was allowed (Thomas K. Richey, TC Memo 2023-43).

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Tax Glossary

Kiddie tax

The tax on the investment income in excess of $1,700 (may change after 2007) of a child under age 18, based on the parents’ marginal tax rate and computed on Form 8615.

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