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the taxable year and not compensated for by insurance or
otherwise. Section 165(c) limits the allowance of losses in the
case of individuals. Section 165(c)(3) allows as a deduction to
an individual certain losses commonly referred to as casualty
losses. A casualty loss is allowable to an individual for a loss
of property not connected with a trade or business or with a
transaction entered into for profit, if the loss results from
"fire, storm, shipwreck, or other casualty", subject to
limitations set forth in section 165(h).
Section 165(h)(1) provides that any loss of an individual
described in section 165(c)(3) is allowed only to the extent that
the amount of the loss arising from each casualty exceeds $100.
Section 165(h)(2) provides that if the personal casualty losses
for a taxable year exceed the personal casualty gains for the
year, the losses are allowable only to the extent of the sum of
3(...continued)
* * * * * * *
(c) Limitation on Losses of Individuals.--In the
case of an individual, the deduction under subsection
(a) shall be limited to--
(1) losses incurred in a trade or business;
* * * * * * *
(3) except as provided in subsection
(h), losses of property not connected with a
trade or business or a transaction entered
into for profit, if such losses arise from
fire, storm, shipwreck, or other casualty, or
from theft.
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