• Loss or Gain
  • Complete Destruction
  • Partial Destruction
  • Tax Gain and Loss Details
  • Adjusted Basis
• When To Deduct a Loss
• Proof of Loss
• Figuring a Gain
• Replacement Property
• Replacement Period
• Postponing Gain
• Presidentially Declared Disaster Areas
• Additional Resources
• Sources and Credits

Tax Implications - Proof of Loss

To deduct a casualty or theft loss, you must be able to prove that there was a casualty or theft. For a casualty loss, your records should support the amount you claim for the loss and show all of the following information.

1. The type of casualty (car accident, fire, storm, etc.) and when it occurred.
2. That the loss was a direct result of the casualty.
3. That you were the owner of the property or, if you leased the property from someone else, that you were contractually liable to the owner for the damage. Remember, a casualty loss on leased property cannot be de- ducted until your obligations under the lease are certain.