Casualty Loss Deduction Calculator

This calculator helps you determine the deductible amount for casualty losses on your tax return.

Input Parameters

Calculation Results

Calculation Formula

Deductible Loss = max(0, (FMV Before Loss - FMV After Loss - Reduction Costs) - Insurance Recovery)

Where:
FMV Before Loss: The market value of the property before the casualty.
FMV After Loss: The market value of the property after the casualty.
Reduction Costs: Costs incurred to reduce the loss (e.g., repairs).
Insurance Recovery: Amount received from insurance.

Deductible Loss

Casualty Loss Deduction Calculator Usage Guide

Learn how to use the Casualty Loss Deduction Calculator and its working principles

How to Use the Calculator

  1. Enter the Fair Market Value Before Loss, which is the market value of your property before the casualty occurred.
  2. Enter the Fair Market Value After Loss, which is the market value of your property after the casualty but before any repairs.
  3. Enter the Costs to Reduce Loss, such as repairs or other expenses incurred to mitigate the damage.
  4. Enter the Insurance Recovery, which is the amount you received from your insurance company.
  5. Click the Calculate button to determine your deductible loss.

Important Notes

The deductible loss is the amount you can potentially deduct on your tax return. However, it must be reduced by $100 and 10% of your adjusted gross income (AGI) to determine the actual deductible amount. This calculator only calculates the initial loss amount.

For detailed information on casualty loss deductions, consult the IRS guidelines or a tax professional.