ProConnect HelpIntuit HelpIntuit

Entering personal casualty loss deductions in Lacerte

SOLVEDby IntuitLacerte Tax131Updated July 13, 2022

Beginning January 2018–December 2025, personal casualty losses are nondeductible unless attributable to a federally declared disaster.

How the tax reform affects personal casualty losses

If your client suffers a personal casualty loss from a disaster declared by the president under Section 401 of the Stafford Disaster Relief and Emergency Assistance Act, your client can claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%--of-adjusted-gross-income (AGI) limitations.

If your client has personal casualty gains, you can still offset personal casualty losses against those gains, even if their losses aren't considered a federally declared disaster.

Qualifying for personal casualty losses under the tax reform

Follow these steps to qualify for personal casualty losses under these guidelines:

  1. Go to Screen 17, Dispositions.
  2. Scroll to the Casualties and Thefts (4868) section.
  3. Enter your Description (fire, robbery, etc.).
  4. Enter a 1 in the field 1=personal, 2=business, 3=income, 4=employee.
  5. From the options in the Disaster loss (Ctrl+T) dropdown menu, select Federally declared disaster, occured in 2018, 2019 or 2020.

Was this helpful?

You must sign in to vote, reply, or post
Lacerte Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.