57 of 100. All of the following are true regarding a casualty loss deduction that occurred within a federally declared disaster area The deduction is reported as a miscellaneous deduction subject to the 2%-of-AGI limitation. The losses may be deducted in the year prior to the year the disaster occurred. The losses may be deducted in the year the disaster occurred. O Net losses must be reduced by $100 and 10% of the taxpayer's AGI