Declaring a casualty loss (fire) on primary home.
My home was seriously damaged by fire in 2022 - rendering it uninhabitable - maybe forever. Since casualty losses on residences aren't allowed anymore, what alternatives do I have tax-wise?
Best Answers
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Nonbusiness property (like a primary home) casualty and theft losses not from a federal disaster can only be used to offset casualty and theft gains. For example if you received a gain from insurance, government, or other parties to compensate for the damage, then declaring a casualty loss could decrease the amount of taxable gain you received.
However, if you did not receive a casualty and theft gain, there are unfortunately no other alternatives to this situation. -
Thank you for confirming.
"Fortunately" there was a federally declared disaster (flood) in the area in 2023 - subsequent to the fire - which made the exposed property irreparable. How do I go about taking that loss on my 2023 return?
Answers
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Thank you for the additional information!
Within FreeTaxUSA, you'd select 'Deductions / Credits' > 'Casualty and Thefts' to claim this deduction.
