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This bill would change the tax rules so people can fully deduct certain losses from disasters or other personal damage on their federal taxes. Right now, there is a limit on when and how much of these personal casualty losses can be deducted. The bill would remove that limit starting with tax years after December 31, 2024, which could help homeowners and other taxpayers recover some of the financial damage from fires, storms, theft, and similar events.
- It removes the current limit on deductions for personal casualty losses under federal tax law.
- The change is meant to make it easier for people hit by disasters to claim tax relief for their losses.
- The new rule would apply to losses in tax years beginning after December 31, 2024.
Official Summaries
Protecting Homeowners from Disaster Act of 2025
This bill repeals the limit on the itemized tax deduction for unreimbursed personal casualty losses. Specifically, the bill repeals a provision that generally limits the deduction for tax years 2018-2025 to losses that are attributable to a federally declared disaster. The bill applies to losses sustained after 2024.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 481 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 481
To amend the Internal Revenue Code of 1986 to repeal the limitation on
deductions for personal casualty losses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2025
Ms. Brownley introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the limitation on
deductions for personal casualty losses.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Homeowners from Disaster
Act of 2025''.
SEC. 2. REPEAL OF LIMITATION ON DEDUCTION FOR PERSONAL CASUALTY LOSSES.
(a) In General.--Section 165(h) of the Internal Revenue Code of
1986 is amended by striking paragraph (5).
(b) Effective Date.--The amendment made by this section shall apply
to losses sustained in taxable years beginning after December 31, 2024.
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