This bill would let more taxpayers deduct unreimbursed personal casualty losses on their federal taxes. It removes the recent rule that generally allowed these deductions only if the loss was tied to a federally declared disaster. In short, it repeals the limit on these deductions so people can claim qualified losses even when there’s no federal disaster declaration.

Key points:

• Who is affected: Taxpayers with unreimbursed personal casualty losses.
• What changes: The limit that tied deductions to federally declared disasters is repealed, restoring broader eligibility to deduct these losses.
• When it starts: Applies to losses in tax years beginning after December 31, 2024 (the 2025 tax year).