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In June of last year, a tree fell on my mobile home completely destroying it.
We were about 2,000 from being paid off for it. It damaged all of our master bedroom stuff clothes furniture and what not. The trailer had to be moved and disposed of.

So here's my question I owned the trailer (I was the person on the agreement for mobile home) and after I collected 5,000 from property manager in October of last year;

  • I have not worked in the past year
  • My husband has worked in the past year
  • He is claiming me and kids on his taxes, we have already filled returns

Someone advised me about capital loss and I am not sure if it applies in my case.

If Yes, can I amend my husband's tax return to claim this capital loss?

Should I just claim on that capital loss and file a return?

These are the numbers: The mobile home would have been 20,000 after paid off. We received 5,000 and that covered only the belongings.

We personally did not have insurance this came from pocket of property management because he somewhat exerted responsibility because we asked about the tree for years and nothing was ever done and technically the 5,000 was only for our personal stuff not mobile home it's self I'm sorry hope this helps

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    Can you clarify if I understood this correctly, the Mobile home was at price 20,000. There was a payment of 2,000 that was still due towards the home. The Insurance claim only gave you 5,000 against the damage. You are looking at claiming capital loss of 15,000?
    – Dheer
    Commented Feb 9, 2017 at 4:55
  • If this occurred in 2016, this would be in the next return due in April 2017 - no amendment needed. If this occurred in 2015, then you can look at amending the 2015 return.
    – user662852
    Commented Feb 10, 2017 at 19:48

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The IRS has a way to claim a deduction on casualty losses. The narrative description is here

File Form 4684 to calculate the deduction. Include the furniture, clothes, appliances as well as the home.

Basically, you will be able to deduct (the smaller of loss in value or your basis [what you paid minus any depreciation you have claimed]) minus insurance or other payments to make you whole (the $5000) minus $100 per event minus 10% of your adjusted gross income.

So approximately ($20000 + value of clothes and furniture - $5000 - $100 - 10% of your annual income).

This is a Schedule A itemized deduction. If you don't already itemize, the difference is instead of the standard deduction, you can claim state and local tax, mortgage interest, medical expenses, charitable donations, etc. If you weren't marshaling medical receipts, etc already, try to gather as much as possible to maximize.

The standard deduction for married filing jointly is $12,600 plus $1050 per kid so you need the total of the Schedule A deductions to exceed this amount to make it worthwhile.

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  • Sounds like the owner already took the capital loss, since they had not completed purchasing the home.
    – Xalorous
    Commented Feb 10, 2017 at 21:20

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