A taxpayer is entitled to a deduction for a casualty loss which occurred in a federal disaster area in mid-summer 2019.The taxpayer would prefer to take the casualty loss deduction in 2018 because he had a higher marginal tax rate that year.Since the taxpayer has already filed his 2018 tax return,he will not be able to take advantage of the option.

Question

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Since the casualty loss occurred in 2019, the taxpayer cannot take the deduction in 2018, regardless of whether it occurred in a federal disaster area or not. The deduction must be taken in the year the loss occurred.

A Taxpayer Is Entitled to a Deduction for a Casualty