Casualty losses for nonbusiness property must exceed $100 and result from a sudden, unexpected, or unusual event to be deductible. Losses from drought may not qualify as casualty losses unless there is evidence of rapid and severe subsoil shrinkage. The amount deductible is the difference in fair market value before and after the loss, not exceeding the adjusted basis of the property. Professional engineering opinions and appraisals are necessary to prove the extent of damage, and all opinions and appraisals are subject to IRS review.

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Understanding the Tax Implications and Proofs Required for Residential Casualty Losses

Identifier:
CAC_CC_109_4_22_2_0015
Contributing Institution:
Carl Albert Congressional Research and Studies Center, University of Oklahoma, Norman, OK
Title:
Understanding the Tax Implications and Proofs Required for Residential Casualty Losses
Date Created:
1981-01-01
EDTF:
1981-01-01
Creator:
unknown
Rights:
http://rightsstatements.org/vocab/NKC/1.0/
Language:
eng
Record Type:
correspondence
Collection:
James R. Jones Collection
Collection Finding Aid:
https://arc.libraryhost.com/repositories/3/resources/70
Description:
Casualty losses for nonbusiness property must exceed $100 and result from a sudden, unexpected, or unusual event to be deductible. Losses from drought may not qualify as casualty losses unless there is evidence of rapid and severe subsoil shrinkage. The amount deductible is the difference in fair market value before and after the loss, not exceeding the adjusted basis of the property. Professional engineering opinions and appraisals are necessary to prove the extent of damage, and all opinions and appraisals are subject to IRS review.
Topic:
Education--United States
Congress:
96th (1979-1981)
Physical Location:
CAC_CC_109_4_0000, Box 22, Folder 2, University of Oklahoma, Carl Albert Center Archives, Norman, OK, Standard Shelving
Location Represented:
Oklahoma (state), United States (nation)
Type:
Text
Extent:
2 Pages