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Tax Reform Lacerte - Personal Casualty Losses Deduction

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Tax Reform Lacerte - Personal Casualty Losses Deduction

Beginning January 2018 - December 2025, Personal casualty losses are nondeductible unless attributable to a Federally Declared Disaster. So a Taxpayer who suffers a personal casualty loss from a disaster declared by the President under Section 401 of the 'Robert T. Stafford Disaster Relief and Emergency Assistance Act' will be able to claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%-of-AGI limitations. For a taxpayer that has personal casualty gains, personal casualty losses can still be offset against those gains, even if the losses aren't incurred in a Federally Declared Disaster.

Program Details:

To qualify for Personal Casualty Losses under these guidelines, follow these steps:
  1. Go to Screen 17, Dispositions (Schedule D, 4797, etc.).
  2. Scroll down to the Casualties and Thefts (4868) section.
  3. Enter your Description (fire, robbery, etc.) (code 802).
  4. Enter a '1' in the field 1=personal, 2=business, 3=income, 4=employee (code 86).
  5. From the selection options in the field Disaster loss (Ctrl+T) (code 135) select 2018 federal declared disaster.
Are you interested in receiving an email notification when new Tax Reform information becomes available for Tax Year 2018?  If so, click here!

Other Articles to Try:

2018 Individual and Business Tax Reform - Summary of Changes ( Click Here to view)

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