This chapter explains the tax treatment of casualty and theft losses that are personal and not business related. It also discusses losses on deposits.

This chapter also explains the following topics.

• How to figure the amount of your loss.
• How to treat insurance and other reimbursements you receive.
• The deduction limits.
• When and how to report a casualty or theft.

You must file Form 1040 and itemize your deductions on Schedule A (Form 1040) to claim a deduction for a casualty or theft loss of nonbusiness property. You must use Form 4684 to figure your deduction.

Publication 584 is available to help you make a list of your damaged goods and figure your loss. It includes schedules to help you figure the loss on your home and its contents, and on your motor vehicles.

Casualty and theft losses on nonbusiness property are subject to certain limits. If these limits are more than your losses, you do not have a casualty or theft loss deduction. See Deduction Limits, later.

Other sources of information. For information on a casualty or theft loss of business or income-producing property, see Publication 547.

For information on a condemnation of your home, see Involuntary Conversions in chapter 1 of Publication 544.

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