Casualty loss refers to the loss of property due to events such as fire, storm, shipwreck, or theft. Such losses are allowable as deductions from taxable income, net of any insurance reimbursements. To qualify, the loss must result from a sudden, unexpected, or unusual event. Personal casualty losses can be deducted only if they exceed a $100 floor and 10% of adjusted gross income.
Forfeiture refers to the permanent loss of property for failure to comply with the law, resulting in the divestiture of the title of property, without compensation, for a default or an offense.
