Personal Casualty Gains

Personal Casualty Gains for individuals for United States Federal Income Tax purposes are defined in section 26 U.S.C. § 165(h)(3)(A) of the Internal Revenue Code as the recognized gain of property arising from fire, storm, shipwreck, or other casualty. The property in question cannot be connected with a trade, business, or transaction entered into for profit. See 26 U.S.C. § 165(c)(3).

Along with persons filing as individuals, a husband and wife making a joint return for the taxable year are treated as one individual. See 26 U.S.C. § 165(h)(4)(B)

Net personal casualty gains are taxed as gains from sales or exchanges of capital assets. See .26 U.S.C. § 165(h)(2)(B)

Net personal casualty gains are the excess of a taxpayer's personal casualty gains over personal casualty losses in a given taxable year.

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