Complete and attach Form 4684 to figure the amount of your loss to enter on line 20.
You may be able to deduct part or all of each loss caused by theft, vandalism, fire, storm, or similar causes, and car, boat, and other accidents. You may also be able to deduct money you had in a financial institution but lost because of the insolvency or bankruptcy of the institution.
You can deduct nonbusiness casualty or theft losses only to the extent that:
- The amount of each separate casualty or theft loss is more than $100, and
- The total amount of all losses during the year (reduced by the $100 limit discussed in (1) above) is more than 10% of the amount on Form 1040, line 38.
Exceptions to the above limitations apply to losses in certain disaster areas.taxmap/instr/i1040sa-005.htm#TXMP7e081bde
Casualty and theft losses that occurred in the Kansas disaster area after May 3, 2007, are not subject to the $100 and 10% of adjusted gross income (AGI) limitations if the losses were attributable to the storms and tornadoes that began May 4, 2007. See Pub. 4492-A for more details.taxmap/instr/i1040sa-005.htm#TXMP132dc963
Casualty and theft losses that occurred in a Midwestern disaster area are not subject to the $100 and 10% of AGI limitations if the losses were attributable to the severe storms, tornadoes or flooding. See Pub. 4492-B for more details.taxmap/instr/i1040sa-005.htm#TXMP548c1754
The 10% of AGI limitation does not apply to a casualty loss in a federally declared disaster.
Special rules apply if you had both gains and losses from nonbusiness casualties or thefts. See Form 4684 and its instructions for details.
Use Schedule A, line 23, to deduct the costs of proving that you had a property loss. Examples of these costs are appraisal fees and photographs used to establish the amount of your loss.
For information on federal disaster area losses, see Pub. 547.