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Can a fire loss be deducted anywhere? Client lost his barn and contents and says other accountants told him he could deduct it when I said no

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Level 1
 
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3 Replies 3
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Level 8

Personal casualty and theft losses of an individual, sustained in a tax year beginning after 2017, are deductible only to the extent they’re attributable to a federally declared disaster. The loss deduction is subject to the $100 limit per casualty and 10% of your adjusted gross income (AGI) limitation.

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Level 15

Was it a barn that he kept all of his toys in, or was it a barn that he kept all of his cows and sheep in for his farming business?  The devil is always in the details.

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 7
Level 7

I agree with IRMN if it was used for business and it has some basis remaining.  But you also have to figure in if there was any insurance reimbursement for fire.  It could be gain on disposal.