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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15747
Experience:  15years with H & R Block. Divisional leader, Instructor
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Last year I had a total loss of my home and a devaluation of

Customer Question

Good day sir/madam,
Last year I had a total loss of my home and a devaluation of my 40 acres (many trees lost) due to a wild fire, I was uninsured. I was able to write off the losses however, the loss exceeded my taxable income. Will I be able to claim the remainder of the losses this tax year and perhaps into the following year in order to receive the full amount of the allowable write off for the loss incurred?
Thank you,
Tom Casha
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 1 year ago.

When your losses are more than your income from all sources for the year, you have a “net operating loss” (NOL for short).

You are allowed to apply an NOL to past tax years. This is called carrying a loss back. Your carryback period is three-years because your net operating loss was the result of theft or a casualty.

If you did not carry the loss back you can carry it forward instead until used up.

You can carry forward an NOL for up to 20 years.

So sorry to hear about your situation.

Expert:  Robin D. replied 1 year ago.

When you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the “Other income” line of Form 1040 or Form 1040NR (line 21).

You must attach a statement that shows all the important facts about the NOL. Your statement should include a computation showing how you figured the NOL deduction.

Expert:  Robin D. replied 1 year ago.

Do you understand?