What type of records are considered sufficient for substantiating a casualty loss claim?

To substantiate a casualty loss claim, it is essential to provide concrete evidence that demonstrates the extent of the loss. Estimates for repairs, combined with relevant documentation, signify an actionable understanding of the damage incurred. This includes written estimates from contractors outlining the expected costs to restore the property to its previous condition, as well as receipts or invoices for repairs that have already been made. Such documentation establishes a clear, quantifiable basis for the loss claimed, which is crucial for tax purposes and in ensuring compliance with IRS requirements.

While photographs of property damage can support a claim visually, they do not provide financial evidence of the loss or necessary restoration costs. Written logs of emotional distress, while significant in a personal sense, do not substantiate financial losses and are not recognized in casualty loss claims. Similarly, bank receipts for past expenses do not directly relate to the specific casualty event unless they pertain to that incident's repairs or losses. Therefore, having estimates for repairs along with relevant documentation is the most robust and relevant method for substantiating a casualty loss claim.