Casualty and Theft Losses and Involuntary Conversions
All casualty and theft losses are claimed on Form 4684. The tax treatment of an unreimbursed casualty or theft loss depends on the purpose for which you held the damaged, destroyed, or stolen property. A loss of property held for:
- Personal purposes is subject to the sudden events test (18.1) and a dollar floor (18.12) that reduces the deduction by $100. In addition, net losses for all personal-use ...