Tax Deduction Restored for Personal Casualty Losses: $50,000 Annual Cap.
This bill restores the federal tax deduction for personal casualty losses resulting from events like theft, fire, or accidents that are not declared federal disasters. For tax years 2018 through 2025, these non-disaster losses can be deducted up to an aggregate limit of $50,000 annually. Crucially, the law extends the deadline, allowing taxpayers who incurred such losses since 2018 to file amended returns and claim potential refunds.
Key points
Restores the ability to deduct personal property losses (e.g., theft, non-disaster fire) on federal taxes, previously restricted since 2018.
Imposes a $50,000 annual deduction limit for these non-disaster casualty losses for tax years 2018 through 2025.
Extends the statute of limitations, allowing taxpayers to retroactively claim refunds for eligible losses incurred starting in 2018.
Expired
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