Response to Inquiries about Deductibility of Drought-Related Losses from the Department of Treasury, 1981, 1980-10-28

Item — Box: 4, Folder: 2

Identifier: CAC_CC_109_4_22_2_0016

Staff Only

Response to Inquiries about Deductibility of Drought-Related Losses from the Department of Treasury, 1981, 1980-10-28

The letter from the Department of the Treasury, dated March 2, 1981, is in response to Mr. Jones' inquiries about deductibility of losses incurred during droughts in 1978 and 1980. Generally, losses from property used for personal purposes are not deductible unless they result from a sudden, identifiable event like a casualty. Damage caused by shrinkage during a drought can be considered a casualty loss. The taxpayer must prove that the damage resulted from the drought. The amount of the deductible loss is determined by comparing the fair market value of the property before and after the casualty. Insurance coverage may affect the deductibility of losses. Assistant Secretary Emil M. Sunley offers further assistance if needed.

Dates

1980-10-28

Creator

Jones, James Robert, 1939- (Person)

Language of Materials

English

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