Review the rules (18.1, 18.9) to make sure you have a deductible casualty or theft. Certain losses, though “casualties” for you, may not be deducted if they are not due to theft, fire, or from some other sudden natural phenomenon. The following have been held to be nondeductible losses:
Termite damage (18.1)
Carpet beetle damage
Dry rot damage
Damages for personal injuries or property damage to others caused by your negligence
Legal expenses in defending a suit for your negligent operation of your personal automobile
Legal expenses to recover personal property wrongfully seized by the police
Expenses of moving to and rental of temporary quarters
Loss of personal property while in storage or in transit
Loss of passenger’s luggage put aboard a ship. The passenger missed the boat and the luggage could not be traced.
Accidental loss of a ring from your finger
Injuries resulting from tripping over a wire
Loss by husband of joint property taken by his wife when she left him
Loss of a valuable dog (or family pet) that strayed and was not found
Steady weakening of a building due to normal wind and weather conditions
Damage to a crop caused by plant diseases, insects, or fungi
Damage to property from drought in an area where a dry spell is normal and usual
Damage to property caused by excavations on adjoining property
Damage from rust or corroding of understructure of house
Moth damage
Dry well
Losses occasioned by water pockets, erosion, inundation at still water levels, and other natural phenomena (there was no sudden destruction.)
Death of a saddle horse after eating a silk hat
A watch or spectacles dropped on the ground
Sudden drop in the value of securities
Loss of contingent interest in property due to the unexpected death of a child
Improper police seizure of private liquor stock
Chinaware broken by a family pet
Temporary fluctuation of property value
Damage to property from local government construction project
Fire purposely set by owner
Engine damage due to failure to use antifreeze
Note: Some of the above items may be allowed as business expenses.