Question

Which of the following would typically be deductible as a casualty loss in 2019?

a.Dropping your smartphone in the pool. b.An automobile accident during the daily commute. c.Long-term damage to a home from termites. d.A theft of a big screen television. e.None of these choices are correct.

Answer 1

Casualty and theft loss deductions are only allowed for one-off events that are out of the ordinary and not a routine part of everyday life. The event also must be something that a person was not engaged with when it occurred, like an automobile accident. Natural disasters qualify including earthquakes, fires, floods, hurricanes and storms. Even though a loss may have been sustained by a natural cause, a loss cannot be claimed for something that occurred over time. An example of this would be property erosion because the process is gradual.

Answer : Option D