Income Tax Deductions for Property Loss — February 2010, reviewed January 2013

Dealing with property loss after a disaster, like a flood or tornado, is a challenge. However, property losses from natural disaster are tax deductible.  Such deductions, which are allowed for partial or total loss of personal or business property, could greatly reduce the amount of federal income taxes owed for the year the disaster occurred.

If you claim a theft or casualty loss resulting from a disaster you may be asked to show:

For more details, contact your local tax preparation professional for advice.  IRS offices and their website, www.irs.gov  has more information on casualty losses, too.