J.K. Lasser's Your Income Tax 2023, 2nd Edition

CHAPTER 18Casualty and Theft Losses and Involuntary Conversions

18.1	Casualty or Theft Losses for Personal‐Use Property Must Be Due to a Federally Declared Disaster	429
18.2	When To Deduct a Casualty or Theft Loss	431
18.3	Prior‐Year Election for Disaster Losses	432
18.4	Gain Realized From Insurance Proceeds for Damaged or Destroyed Principal Residence	433
18.5	Who May Deduct a Casualty or Theft Loss	435
18.6	Proving a Casualty Loss	435
18.7	Theft Losses	435
18.8	Floors for Personal‐Use Property Losses	438
18.9	Figuring Your Loss on Form 4684	439
18.10	Personal and Business Use of Property	442
18.11	Repairs May Be a “Measure of Loss”	443
18.12	Excess Living Costs Paid by Insurance Are Not Taxable	443
18.13	Do Your Casualty or Theft Losses Exceed Your Income?	444
18.14	Defer Gain from Involuntary Conversion by Replacing Property	445
18.15	Involuntary Conversions Qualifying for Tax Deferral	446
18.16	How to Elect to Defer Gain	447
18.17	Types of Qualifying Replacement Property	448
18.18	Time Period for Buying Replacement Property	449
18.19	Cost of Replacement Property Determines Postponed Gain	450
18.20	Special Assessments and Severance Damages from Condemnation	451

An itemized deduction for casualty and theft losses of personal‐use property is allowed for 2018 through 2025 only if the losses are attributed to federally declared disasters. An eligible loss is deductible for the year it is “sustained” (18.2). The loss is claimed ...