HAS ANYONE EXPERIENCED ANY OF THESE LOSSES

(c) allows individual to claim losses incurred:

1) in a trade or business,

.2) in a transaction entered into for profit, or

3) nonbusiness property damaged or destroyed as a casualty or theft.

Events that are Not Casualties: Event must be sudden, unexpected, and unusual. Progressive deterioration (ex: termite damage) does not qualify

Theft Losses: Deducted in the year of discovery, not in the year the theft took place. If there is a claim (i.e. insurance claim) against the loss, and reasonable expectation of recovery, no loss is allowed. Loss may be allowed if the final insurance settlement is less than the adjusted basis of the property.

When To Deduct Casualty Losses: Generally, in the year of the loss. Disaster Area Losses: If the President of the US declares an area a Disaster Area, special tax rules govern. Taxpayer may elect to declare the loss in the tax year immediately preceding the year of the actual disaster. This is to provide immediate tax relief in the form of a tax refund for prior overpaid taxes.

WHAT ABOUT EXPENSES RELATED TO SUPER STORM SANDY, HOW WOULD THEY HAVE BEEN DEDUCTED? ANY EXPERIENCES WITH CASUALTY OR THEFT LOSSES?