We think our home has lost value due to a highway. Can we take a tax deduction?
Question: We purchased our home in the West Valley ten years ago. Our home is in a nice area but is near Interstate 10. The recent freeway expansion has increased noise and pollution, and we believe the value of our house has decreased by at least $100,000. If we get an appraisal substantiating this $100,000 decrease in value, can we take a $100,000 casualty loss deduction on our 1040 income tax return?
Answer: No. Even if the increased noise and pollution is a “sudden, unexpected, and unusual” event, which is required for a casualty loss deduction, there has probably been no “physical damage” to your home, which is also required for a casualty loss deduction.
Contact real estate attorney Christopher A. Combs at .