Per Casualty Floor

The first limitation is a 100 floor per casualty event meaning that only the loss amount in excess of 100 is deductible.

Per casualty floor. The fire caused the deaths of 146 garment workers 123 women and girls and 23 men who died from the fire smoke inhalation or falling or jumping to their deaths. The 100 per casualty floor is increased to 500. Moreover your net casualty loss from these qualified disasters doesn t need to exceed 10 of your adjusted gross income to qualify for the deduction but the 100 limit per casualty is increased to 500 see disaster area losses for more information on the special relief provided as part of the disaster tax relief and airport and airway. What this says is that while the casualty and theft loss deduction was revoked the deduction for casualty disaster losses is available and the floor is raised from 100 to 500.

The triangle shirtwaist factory fire in the greenwich village neighborhood of manhattan new york city on march 25 1911 was the deadliest industrial disaster in the history of the city and one of the deadliest in u s. Generally you must deduct a disaster loss on your tax return for the same year the disaster occurred. But if your loss occurs from a federally declared disaster you may be able to apply your casualty loss tax deduction to your tax return for the. 5 000 500 per casualty limit 4 500 joe s casualty loss deduction when to report.

Moreover your net casualty loss from these qualified disasters doesn t need to exceed 10 of your adjusted gross income to qualify for the deduction but the 100 limit per casualty is increased to 500 for more information see pub. The irs has arbitrarily mandated that any amount in excess of the 10 agi limitation is then deductible. For simplicity let s say a couple has an annual agi of 100 000. The 10 of agi threshold then applies.

However taxpayers are not required to itemize to claim these qualified disaster related personal casualty losses caused by the hurricanes and can add the qualified disaster. Unfortunately the deduction for unreimbursed casualty and theft losses is limited to the excess above 10 percent of your adjusted gross income agi after subtracting 100 per event. The second limitation is a 10 of adjusted gross income agi floor which applies to the total of the taxpayer s net casualty losses for the year after subtracting insurance reimbursements and the 100 dollar per event. A separate 500 floor is subtracted from each loss and then the remaining amounts are totaled.