Casualty And Theft Losses
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Definition of 'Casualty And Theft Losses'
Deductible losses stemming from the loss or destruction of the taxpayer's personal property. In order to be deductible, casualty losses must result from a sudden and unforseeable event, such as fire or earthquake. Theft losses generally require proof that the property was actually stolen and not just lost or missing.
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Investopedia explains 'Casualty And Theft Losses'
Casualty and theft losses are reported under the casualty loss section on Schedule A of Form 1040. They are subject to a 10% adjusted gross income (AGI) threshold limitation as well as a $100 reduction per loss. The taxpayer must be able to itemize deductions in order to claim any personal losses.
Example:
Jim lost his car and some jewelery as a result of theft. The car's fair market value was $7,500 and the jewelry was worth $1,800. His AGI for the year was $38,000. Assuming that Carl itemizes deductions, he can deduct any loss amount above $3,800 (10% of AGI). Therefore he can report a total loss as follows:
$7,500 + $1,800 = $9,300 loss
$9,300 - $100 - $100 = $9,100 ($100 reduction for each loss)
$9,100 - $3,800 = $5,300 deductible loss to be reported on Schedule A
Finally, losses that have been reimbursed by insurance are disallowed. Claims that are paid in a later year for losses that were deducted in a previous year must be counted as income.
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Search results for 'Casualty And Theft Losses'
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http://www.investopedia.com/articles/taxes/08/itemized-deduction.asp
Deducting Disaster: Casualty And Theft Losses. ... Casualty and theft losses can
be carried back three years or forward for up to 20 years. ...
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http://www.investopedia.com/articles/tax/11/tax-tips-for-retirement.asp
... Also, any casualty or theft losses pertaining to your property can provide tax
relief. ... (Read Deducting Disaster: Casualty And Theft Losses.). ...
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http://www.investopedia.com/articles/taxes/08/itemized-deductions-overview.asp
... Casualty and Theft Losses - Any loss incurred as a result of a casualty or theft
can be reported on the Schedule A. Unfortunately, only losses in excess of 10 ...
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http://www.investopedia.com/articles/pf/08/business-insurance-coverage.asp
... (For more on what to do if youre a victim of theft, read Deducting Disaster: Casualty
And Theft Losses.) An important risk not covered in a homeowner's ...
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http://www.investopedia.com/articles/pf/08/casualty-insurance.asp
... insurance covers events, such as theft or burglary. ... focus on three major types of
casualty insurance ... motorcycle and other vehicles against losses sustained from ...
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http://www.investopedia.com/university/insurance/insurance3.asp
... interest in the insured physical property against losses. ... reading, see Do You Need
Casualty Insurance?) Auto ... smoke, fire, lightening and theft , plus rupture ...
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http://www.investopedia.com/articles/tax/09/deducting-property-damage.asp
... result of a qualifying event, you will need to determine the loss on each item and
then add those losses to come ... If the casualty or theft affected personal ...
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http://www.investopedia.com/exam-guide/cfp/property-casualty-liability-insurance/cfp4.asp
... 7.12 Consumer protection laws: Identity Theft Protection. ... Property, Casualty and
Liability Insurance: 10.1 Introduction to ... Methods; 33.6 Net Operating Losses (NOL ...
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http://www.investopedia.com/university/insurance/insurance1.asp
... Protecting your car against theft or losses incurred because of accidents;
And many more. Next: Intro To Insurance: Fundamentals Of ...
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http://www.investopedia.com/exam-guide/cfp/property-casualty-liability-insurance/default.asp
... 7.12 Consumer protection laws: Identity Theft Protection. ... Property, Casualty and
Liability Insurance: 10.1 Introduction to ... Methods; 33.6 Net Operating Losses (NOL ...
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