Protecting Homeowners from Disaster Act of 2025
The Protecting Homeowners from Disaster Act of 2025 (H.R. 481) would repeal the limitation on deductions for personal casualty losses by striking the relevant paragraph of the Internal Revenue Code (165(h)(5)). This means the cap that currently limits how much of a personal casualty loss a taxpayer can deduct would be removed. The bill applies to losses sustained in taxable years beginning after December 31, 2024, so affected taxpayers could potentially claim larger deductions for sudden, destructive losses to their personal property (such as homes) caused by disasters, subject to the other rules that govern casualty loss deductions. The overall intent is to make it easier for disaster-impacted homeowners to recover financially through tax relief. The bill does not list other changes to casualty-loss rules beyond removing this limitation, so existing requirements about what qualifies as a casualty loss, how losses are calculated, and other related caps or rules would continue to apply unless explicitly repealed or amended elsewhere. The short title for this measure is the Protecting Homeowners from Disaster Act of 2025.
Key Points
- 1Repeals the limitation on deductions for personal casualty losses by striking paragraph (5) of Section 165(h) of the Internal Revenue Code.
- 2Applies to losses sustained in taxable years beginning after December 31, 2024.
- 3Official short title: “Protecting Homeowners from Disaster Act of 2025.”
- 4Introduced in the House by Ms. Brownley and referred to the Committee on Ways and Means.
- 5Outcome: The amount taxpayers can deduct for personal casualty losses would no longer be limited by the prior cap, though other existing rules governing casualty losses (e.g., eligibility, insurance reimbursements) would still apply.