Casualty Loss Deduction Restoration Act

Bill 118 HR 4539, also known as the Casualty Loss Deduction Restoration Act, is a piece of legislation introduced in the US Congress. The purpose of this bill is to restore the casualty loss deduction that was previously available to taxpayers who suffered losses due to events such as natural disasters, theft, or accidents.

The casualty loss deduction allows taxpayers to deduct a portion of their losses that are not covered by insurance from their taxable income. This deduction was limited by the Tax Cuts and Jobs Act of 2017, which only allowed taxpayers to claim the deduction if their losses exceeded 10% of their adjusted gross income.

The Casualty Loss Deduction Restoration Act seeks to repeal this limitation and allow taxpayers to claim the deduction for losses that exceed $500. This would provide much-needed relief to individuals and families who have suffered significant financial losses due to unforeseen events. The bill has received bipartisan support in Congress, with lawmakers recognizing the importance of providing assistance to those who have been affected by disasters and other unfortunate circumstances. Supporters of the bill argue that restoring the casualty loss deduction will help individuals and communities recover more quickly and rebuild their lives. Overall, the Casualty Loss Deduction Restoration Act aims to provide financial relief to taxpayers who have experienced losses beyond their control and restore a valuable deduction that can help alleviate some of the financial burden associated with these losses.