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Posted: Mon Apr 02, 2007 3:57 am

As per the IRS article, I can claim a deduction for destroyed, damaged or stolen property that happens due to casualty or theft.

Now can anyone explain the paragraph below?

Posted: Mon Apr 02, 2007 5:24 am

I had this happen to me during Hurricane Rita. The Irs wants to know if you were reimbursed by a disaster recovery agency or insurance. I believe that they let you claim the difference between stated value vs insurance. I had damages of about 35K,after insurance I was allowed to clain about 12K.

Posted: Wed Apr 04, 2007 4:51 am

Thanks for helping me understand this cajunbulldog.

So the portion of loss that is not covered in the insurance is tax deductible right? But the quoted text in my first post is saying something different or it's me who does not understand it correctly.

Posted: Wed Apr 04, 2007 6:12 am

There's two sentences. The first sounds like it is saying if you have insurance but don't file a claim, then you can't claim your loss as a deduction. However, if you do file a claim, then you can deduct your net loss (total loss less insurance proceeds).

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