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taxmap/pub17/p17-137.htm#en_us_publink1000173520

Chapter 25
Nonbusiness Casualty and Theft Losses(p171)

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Nonbusiness Casualty and Theft Losses


What's New for 2009(p171)


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taxmap/pub17/p17-137.htm#en_us_publink1000245941

Increase in personal casualty and theft loss limit.(p171)

Generally, each personal casualty or theft loss is limited to the excess of the loss over $500. In addition, the 10%-of-adjusted-gross-income (AGI) limit continues to apply to the net loss.
taxmap/pub17/p17-137.htm#en_us_publink1000245942

New Schedule L (Form 1040A or 1040).(p171)

If you claim a net disaster loss as part of your standard deduction, you must complete Schedule L (Form 1040A or 1040) and attach it to Form 1040.

What's New for 2010(p172)


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taxmap/pub17/p17-137.htm#en_us_publink1000190732

Decrease in personal casualty and theft loss limit.(p172)

Each personal casualty or theft loss is limited to the excess of the loss over $100 (instead of $500). In addition, the 10%-of-AGI limit continues to apply to the net loss.
taxmap/pub17/p17-137.htm#en_us_publink1000190733

Disaster losses.(p172)

The special rules that were in effect in 2008 and 2009 for losses of personal use property attributable to federally declared disasters do not apply to losses occurring in 2010 and later years. Instead, these losses will be subject to the 10%-of-AGI limit and will be deductible only if you itemize your deductions. These losses will continue to be subject to the $100-per-loss limit.
taxmap/pub17/p17-137.htm#TXMP667c9d6a
This chapter explains the tax treatment of personal (not business related) casualty losses, theft losses, and losses on deposits.
The chapter also explains the following 
topics.
taxmap/pub17/p17-137.htm#en_us_publink1000173527

Forms to file.(p172)


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When you have a casualty or theft, you have to file Form 4684. You will also have to file one or more of the following forms.
taxmap/pub17/p17-137.htm#en_us_publink1000173528

Condemnations.(p172)


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previous topic occurrence Condemnation next topic occurrence

For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544.
taxmap/pub17/p17-137.htm#en_us_publink1000173529

Workbook for casualties and thefts.(p172)


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Workbook for Casualties and Thefts

Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles.
taxmap/pub17/p17-137.htm#en_us_publink1000173530

Other sources of information.(p172)


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For information on a casualty or theft loss of business or income-producing property, see Publication 547.

taxmap/pub17/p17-137.htm#TXMP10e7260a

Useful items

You may want to see:


Publication
 544 Sales and Other Dispositions 
of Assets

 547 Casualties, Disasters, and  
Thefts

 584 Casualty, Disaster, and Theft  
Loss Workbook (Personal-Use 
Property)

Form (and Instructions)
 Schedule A (Form 1040): Itemized Deductions
 Schedule D (Form 1040): Capital Gains and Losses
 Schedule L (Form 1040A or 1040): Standard Deduction for Certain Filers
 4684: Casualties and Thefts
taxmap/pub17/p17-137.htm#en_us_publink1000173531

Casualty(p172)


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A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.
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Deductible losses.(p172)


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Deductible Losses

Deductible casualty losses can result from a number of different causes, including the following.
taxmap/pub17/p17-137.htm#en_us_publink1000173535

Nondeductible losses.(p172)


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A casualty loss is not deductible if the damage or destruction is caused by the following.
taxmap/pub17/p17-137.htm#en_us_publink1000173536

Family pet.(p172)
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Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met.
taxmap/pub17/p17-137.htm#en_us_publink1000173537

Example.(p172)

Your antique oriental rug was damaged by your new puppy before it was housebroken. Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss.
taxmap/pub17/p17-137.htm#en_us_publink1000173538

Progressive deterioration.(p172)
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Loss of property due to progressive deterioration is not deductible as a casualty loss. This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. The following are examples of damage due to progressive deterioration.