What records support a casualty loss?

The proof checklist for a casualty

To deduct a casualty or theft loss you must be able to show that there was one and to support the amount. For a casualty the publication gives four things you should be able to show. Ownership, or if you leased from someone else, that you were contractually liable to the owner for the damage. The type of casualty, such as a car accident, fire or storm, and when it occurred. That the loss was a direct result of the casualty. And whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. In practice this means a deed, title, purchase receipt or lease; a fire or police report, weather record or a FEMA declaration; before and after photographs; and your insurance claim file.

The proof checklist for a theft

A theft loss needs ownership, proof that the property was stolen, the date you discovered it missing, and the reimbursement position. You do not need a conviction, but the taking must be illegal under state law and done with criminal intent. The publication separates theft from mere disappearance: the simple loss of money or property is not a theft, though an accidental loss from a sudden, unexpected or unusual event can be a casualty, as in its example of a ring diamond that falls out when a car door breaks the setting and is never found. A police report helps establish the theft. An unreimbursed theft loss is deductible only in the year you discover the property was stolen.

No receipts? Other satisfactory evidence

The publication states that it is important to have records proving your deduction, but if you do not have the actual records you can use other satisfactory evidence. For disaster victims who lost records, it points to IRS guidance on reconstructing records after a natural disaster or casualty loss, and to Publication 3067. You should keep the records supporting a disaster loss deduction, though you do not attach them to the amended return. When you ask for a copy of an earlier return to prepare an amendment, the fee for Form 4506 is waived if your main home, principal place of business or tax records are in a federally declared disaster area.

Photographs and appraisals

For a casualty that damaged rather than destroyed property, the decrease in value must be measured. The publication calls for a competent appraisal of the property immediately before and immediately after, made by someone who recognizes the effect of any general market decline, and lists factors for judging an appraisal: familiarity with your property, knowledge of comparable sales, area conditions and appraisal method. Photographs taken after the casualty help establish its condition and value, and photographs of the property after repairs help show it was restored only to its prior condition. The cost of photographs and appraisals used as evidence is not part of the loss; the publication treats it as an expense of determining your tax, which cannot be deducted as a miscellaneous itemized deduction for tax years after 2017. An appraisal used to obtain a federal disaster loan may be usable to establish the amount of a disaster loss.

Using the repair bill as the measure

The cost of repairs is not part of the loss, and neither is cleanup, but it can be used as a measure of the decrease in value if all five conditions are met: the repairs were actually made, they were necessary to restore the property to its pre-casualty condition, the amount was not excessive, the repairs took care of the damage only, and the value after repairs is not more than the value before the casualty. Use the checklist above to test your situation. Safe-harbor methods in Revenue Procedure 2018-08, which the publication says the IRS will not challenge if you qualify and use them, let owners of personal-use residential real property use an estimated repair cost (losses of $20,000 or less), a written good-faith estimate (losses of $5,000 or less), an insurance report, and, for federally declared disasters, a binding contractor contract or a federal disaster loan appraisal in place of an appraisal. You attach a statement to Form 4684 naming the method. For the full formula, see figuring a casualty loss.

Items not covered by a bank deposit

The publication does not contain special rules for items stored in a safe deposit box. A loss caused by a theft there follows the theft rules above, simple disappearance is not a theft, and a bank failure follows the separate loss-on-deposits rules, which allow a casualty loss only up to personal casualty gains. See disaster losses for the declared-disaster route.

Sources

• IRS Publication 547, Casualties, Disasters, and Thefts (2025): Proof of Loss; Cost of cleaning up or making repairs; Costs of photographs and appraisals. Read November 2, 2026.

Edition read: Publication 547 (2025), for use in preparing 2025 returns. Dollar limits and dates on this page are the figures printed in that edition; legislation enacted after it was published is not reflected, so check the current publication, Form 4684 and its instructions for your tax year. This page summarizes the publication and does not replace it.