John discovers that termites have destroyed the front porch of his office building. The damage occurred over a 3-year period. He is eligible for a casualty loss deduction.

Question

Quizplus · Accepted Answer

Casualty losses are generally sudden, unexpected, or unusual events such as natural disasters, thefts, or accidents. Termite damage, occurring gradually over time, does not qualify for a casualty loss deduction.

John Discovers That Termites Have Destroyed the Front Porch of His