When Casualty Loss may be Claimed as Deduction from Gross Income

March 13, 1991 BIR RULING NO. 045-91 29 (d) 000-00 045-91 S i r : This refers to your letter dated November 12, 1990 which was referred to us by the Secretary of National Defense relative to your request for the issuance of a tax credit certificate equal to the value of your casualty loss in military operations during the failed December, 1989 coup d' etat. It appears that your house located at No. 118 Katipunan Road White Plains, Quezon City, together with your personal properties therein with an aggregate value of P2,140,000.00 was hit by air rocket bombardment. In reply, please be informed that Section 29 (d) of the Tax Code allows the individual taxpayer who sustained a casualty loss on property connected with his trade or business and not compensated for by insurance to claim the same as deduction from his gross income during the taxable year it was incurred. Casualty loss is one resulting from complete or partial destruction of property from an identifiable event of a sudden, unexpected, or unusual nature (Rev. Reg. No. 12-77). The destruction of your house at 118 Katipunan Road, White Plains, Quezon City, during military operations, is without doubt, a casualty loss; but since the loss of your house is not connected with your trade, profession or business and no proof was submitted that it was not covered by insurance, said loss cannot be claimed as a deduction from your gross income in 1989. Very truly yours, (SGD.) JOSE U. ONG Commissioner