Proof of Storm Damage Required for a Loss Deduction

Prior to 2018, individuals who sustained casualty losses to their homes and other personal-use property could take an itemized casualty loss deduction. From 2018 through 2025, losses are allowed only if they result from a federally-declared disaster. In any case—including within current federally-declared disaster areas, to claim a loss, proof that the property suffered from a storm or other casualty event is essential. One couple claimed that a 2017 storm severely damaged their home and a boat moored at it. They supposedly took a photo of the damage on a smart phone to meet the proof-of-loss requirement, but claimed the photos were lost with a software update to the phone. Absent any other proof (a photo a year later wouldn’t do), no casualty loss deduction was allowed (Thomas K. Richey, TC Memo 2023-43).