IRS rules for ‘casualty-loss’ deductions get tougher

The tax overhaul that took effect last year makes it impossible for some homeowners to deduct financial losses for damage or destruction of their property.

Q. Is it true that homeowners can no longer deduct casualty losses for damage to their property?

A. No, but the tax changes that President Donald Trump signed into law at the end of 2017 virtually guarantee that the number of casualty-loss claims will plummet as more owners file their 2018 federal returns.

The IRS defines a “casualty loss” as a type of tax loss for damage or destruction caused by a “sudden, unusual or unexpected event.”

Until the start of last year, a homeowner who, say, had a large tree in his front yard fall onto his roof could usually deduct all but $100 of the financial losses that weren’t covered by insurance.

That rule has changed.

Now, a casualty-loss deduction can be claimed only if the damage or destruction was caused by a federally declared disaster, such as the horrific wildfires that swept across California in November or the powerful hurricanes that blasted the Southeast earlier in the year. If the damage wasn’t caused by such a disaster, the loss can’t be written off.

The pre-2018 tax rules apply if you suffered a loss last year that was, indeed, caused by a federally proclaimed disaster.

You must itemize your federal return to claim the deduction and must reduce the amount of your unreimbursed losses by $100. Also, after making that calculation, you can deduct only your unreimbursed losses that exceed 10 percent of your adjusted gross income, the amount that’s subject to federal taxes after all of your exemptions and itemized deductions have been made.

You can find a complete list of all 2018 federally declared disasters at the Federal Emergency Management Agency’s website, www.fema.gov/disasters. Also get a free copy of

IRS Publication 547, Casualties, Disasters and Thefts, by calling the agency at 800-829-3676 or by downloading it from www.irs.gov.

REAL ESTATE TRIVIA About 65 percent of Americans will see their taxes reduced when they complete their 2018 federal return this year, according to the nonpartisan Tax Policy Center. An estimated 29 percent will see no change, and 6 percent will pay more.

Q. If my boyfriend moves into my apartment, will I have to notify my landlord? A. The only way to get a definitive answer is to read your current lease or rental agreement.

Nearly all such contracts clearly state how many people can occupy the unit and demand that the landlord have the right to approve any new co-tenant in advance.

Even if the agreement doesn’t address such issues, you should talk with the landlord about you and your sweetheart’s plans.

You don’t want to instead quietly move him in behind the landlord’s or property manager’s back: The owner certainly would find out sooner or later, which could erode any goodwill the two of you have established after first moving in yourself.

That, in turn, could have major repercussions — especially if you are renting the apartment on a month-tomonth basis or live in an area where landlords can evict a tenant for virtually any reason.

Q. I appreciate the recent columns you have written that touched upon issues regarding people like me, who live with a disabled parent and serve as the primary caregiver.

But there’s one thing I’d like you to mention to your readers: safety in the bathtub or shower.

My mother broke her hip last year when she fell in the shower while reaching for a bar of soap she had dropped. Her doctor later suggested that I install a wall-mounted soap dispenser filled with liquid soap so the accident wouldn’t happen again.

It worked, and she loves the convenience of not having to deal with slippery bars.

A. I’m glad to pass along your valuable tip. Tens of thousands of bathroom falls occur when someone, elderly or not, slips in a shower or bathroom.

Most home-improvement stores or bigbox retailers have a variety of models of liquid or foam soap dispensers that can be mounted chest-high on a wall, much like the ones you’d see in a restaurant or gas station.

Don’t forget to also line the floor of each shower or tub with inexpensive nonslip strips, mats or tiles.

I was surprised to learn, though, that the U.S. Centers for Disease Control and Prevention states that the roughly 250,000 nonfatal bathroom injuries each year aren’t caused when bathing. Instead, the majority are caused by slippery throw rugs, whether the fall involves an elderly person tripping on the way to the toilet or teenagers rushing to put on makeup or groom their hair before a big date.

Your best choice to protect your loved ones is to simply throw away those risky bathroom rugs. If you can’t bear to part with them, secure them to the floor with double-faced tape, tacks or slip-resistant backings.

ABOUT LIVING TRUSTS David Myers’ booklet, “Straight Talk About Living Trusts,” provides the information readers need to help determine whether forming an inexpensive trust would be a good idea based on their individual circumstances. For a copy, send $4 and a self-addressed, stamped envelope to D. Myers/Trust, P.O. Box 4405, Culver City, CA 90231-4405. Net proceeds will be donated to the American Red Cross.

Send questions to David Myers, P.O. Box 4405, Culver City, CA 90231-2960; and we’ll try to respond in a future column.