Rules for disaster victims claiming casualty losses

An overturned car sits amidst debris from houses destroyed during Hurricane Sandy in Union Beach, New Jersey, U.S. on Saturday, Nov. 3, 2012. (Photo: Victor J. Blue/Bloomberg)

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Editor’s Note: Under the 2017 Tax Act, individuals are no longer entitled to deduct casualty and theft loss expenses as itemized deductions for 2018-2025 (when those losses are not related to property used in a trade or business).  An exception exists for losses that occur in federally declared disaster areas.