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I’m at a Loss: Tax Treatment of Individual Taxpayer Losses

March 21, 2023 (2 min read)

The Internal Revenue Code imposes a variety of limitations and obstacles to individual taxpayers’ ability to deduct certain types of losses. There are generally three different types of losses covered in this practice note: casualty and theft; net operating; and investment.  While all three are important, the rate at which taxpayers have claimed casualty losses has been exacerbated by natural disasters and other weather-related events in recent years. Notably, the U.S. experienced 18 separate weather and climate disasters in 2022 at a cost of $165 billion (businesses and individuals). Learn more about the different types of losses and your ability to deduct them.

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