In 2021, Wilson Enterprises, a calendar year taxpayer, suffers a casualty loss of $237,500. The casualty was attributable to a Federally declared disaster. How much of the casualty loss will be deductible by Wilson under the following circumstances? a. Wilson is an individual proprietor and has AGI of $593,750. The casualty loss was a personal loss, and the insurance recovered was $130,625 before any limitations. Wilson can claim a casualty loss as an itemized deduction of $ 47,400 Feedback Check My Work When examining how corporations are treated under the Federal income tax, a useful approach is to compare their treatment with applicable to individual taxpayers. A casualty is the loss of property (including damage and destruction) because of a sudden event. event must be identifiable, unexpected, and unusual. b. Assume Wilson is a corporation, and the insurance recovered was $130,625 before any limitations. Wilson can deduct 130,625 X.