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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Water heater is located in kitchen closet. Water heater

Customer Question

water heater is located in kitchen closet. Water heater burst and sprayed water inside closet and kitchen rendering small appliance worthless. can worthless items and water heater replacement be a casualty loss or deducted elsewhere. casualty loss is not very lucrative to taxpayer. Duct work under kitchen had to be replaced.
Submitted: 9 months ago.
Category: Tax
Customer: replied 9 months ago.
this more of a tax question than plumbing. plumbing is replaced .
Expert:  Lev replied 9 months ago.

A casualty loss can result from the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption.

A casualty does not include normal wear and tear or progressive deterioration.

Based on information you provided - there is NO casualty event.

and claiming the casualty loss deduction would not be appropriate in such situation.

Sorry if you expected differently.

Customer: replied 9 months ago.
is this a loss of any kind? I understand about water heat as normal wear and tear but what about electric vacuum cleaners and floor polishers. thanks
Expert:  Lev replied 9 months ago.

The issue is that is NOT a casualty event...

See regulations

https://www.law.cornell.edu/cfr/text/26/1.165-7

Except as otherwise provided in paragraphs (b)(4) and (c) of this section, any loss arising from fire, storm, shipwreck, or other casualty is allowable as a deduction under section 165(a) for the taxable year in which the loss is sustained.

There is nothing like that based on your information...

If there is no casualty event - you may not deduct casualty losses.

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