Had a Casualty or Theft
Loss on Personal Asset
Loss on personal property such as damage done to cars, houses, and personal property as the result of hurricanes, is a possible tax deduction. See the instructions for Form 4684, Casualties and Thefts.
Suffered Casualty or Theft
To deduct a casualty or theft loss, you must be able to prove that a
casualty or theft loss occurred and provide proof of the amount that you
deduct. Each casualty or theft loss is reduced by any reimbursement and by
$100, and is further reduced by 10% of adjusted gross income.
Victim of natural disaster
If you were the victim
of a natural disaster which was declared a federal disaster by the President of
the United States, you have a choice of which tax year to deduct a casualty
loss. You may deduct the loss for the year in which it occurred, or you may
choose to amend your previous year's return.
If you have been involved in an automobile accident, the damage to your car may be considered a casualty loss. This would apply if the loss were not due to your negligence or the negligence of someone driving your vehicle. The loss must first be reduced by any insurance or other reimbursement received or that is expected to be received. If the vehicle was your personal vehicle the loss would be taken on Schedule A as an itemized deduction.