Personal casualty losses (2018 and beyond)
Since the Tax Cuts and Jobs Act of 2018, personal casualty and theft losses are only deductible if:
- The loss is caused by a federally declared disaster
- The loss exceeds $100 per event (after insurance reimbursement)
- Total losses exceed 10% of your AGI
The One Big Beautiful Bill Act (2025) extended this restriction — it was originally set to expire after 2025 but now continues indefinitely.
Common losses that are not deductible: car theft, home burglary, fire not in a disaster zone, vandalism, accidental damage.
Business casualty and theft losses
Business property losses are still fully deductible regardless of disaster status. If your business suffers a loss from:
- Theft of equipment or inventory
- Storm, flood, fire, or other sudden damage
- Vandalism to business property
- Vehicle accident (business vehicle)
You deduct the loss (minus insurance reimbursement) on your business return. The $100 per-event and 10% AGI thresholds don't apply to business losses.
How to calculate the loss
The deductible amount is the lesser of:
- Your adjusted basis in the property (what you paid minus depreciation), or
- The decrease in fair market value due to the casualty
Then subtract any insurance reimbursement. If insurance covers the full loss, there's nothing to deduct.
Your $3,000 laptop is stolen from your car. Insurance reimburses $1,500.
Business laptop: Deductible loss: $3,000 - $1,500 = $1,500 on Schedule C
Personal laptop: Not deductible (theft is not a federally declared disaster)
See IRS Publication 547 (Casualties, Disasters, and Thefts). Personal losses: Form 4684, Section A → Schedule A. Business losses: Form 4684, Section B → Schedule C or Form 4797.
Document business assets and losses
Hivebooks tracks your business equipment and assets. If something is lost or damaged, you have the records you need to claim the deduction.
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