How Do Deductions For Casualties or Thefts Work?

If property you own was stolen, or damaged in an accident or sudden event (fire, flood, etc.), you may be able to claim a deduction for the loss in value, less the amount of insurance recovered.

In general, the loss is only deductible to the extent that it exceeds TEN percent of your adjusted gross income.

See Form 4684 for specifics.

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