How can individuals deduct a loss on a deposit in a qualified financial institution on their tax returns? OA. A taxpayer may elect to treat the loss on deposits in qualified financial institutions as a personal casualty loss in reduced by 10% of the taxpayer's AGI. OB. Individuals may treat a loss on deposits in qualified financial institutions as a nonbusiness bad debt in the year capital loss rules. OC. Individuals may treat a loss on deposits in qualified financial institutions as a loss against AGI for the year, not to OD. Individuals may treat a loss on deposits in qualified financial institutions as a long-term capital loss in the year the has short-term capital gains for the year.