Net casualty loss allowed only to the extent it exceeds 10 percent of adjusted gross income
(A) In general
(A)In general#
If the personal casualty losses for any taxable year exceed the personal casualty gains for such taxable year, such losses shall be allowed for the taxable year only to the extent of the sum of—
(i) the amount of the personal casualty gains for the taxable year, plus
(ii) so much of such excess as exceeds 10 percent of the adjusted gross income of the individual.
(A)(i)#
the amount of the personal casualty gains for the taxable year, plus
(A)(ii)#
so much of such excess as exceeds 10 percent of the adjusted gross income of the individual.
(B)Special rule where personal casualty gains exceed personal casualty losses#
If the personal casualty gains for any taxable year exceed the personal casualty losses for such taxable year—
(i) all such gains shall be treated as gains from sales or exchanges of capital assets, and
(ii) all such losses shall be treated as losses from sales or exchanges of capital assets.
(B)(i)#
all such gains shall be treated as gains from sales or exchanges of capital assets, and
(B)(ii)#
all such losses shall be treated as losses from sales or exchanges of capital assets.