CASUALTY
A serious or fatal accident. A person or thing
injured, lost, or destroyed. A disastrous occurrence
due to sudden, unexpected, or unusual cause.
Accident; misfortune or mishap; that which comes
by chance or without design. A loss from such an
event or cause, as by fire, shipwreck, lightning, etc.
An inevitable casualty is one that occurs
through no fault of anyone. It happens totally
without design, as in the case of an accident
resulting from an act of God, such as a house
struck by lightning or flooded by a storm.
A casualty loss is a tax deduction that can be
taken for an accident that is incurred in a trade
or business, in a transaction entered into for
profit, or for the complete or partial loss or
destruction of property owned by the taxpayer.
It arises from certain specific events such as a
fire, an auto accident, or a flood. Casualty losses
are computed subject to special rules and are
treated as itemized deductions.
Many people purchase casualty insurance so
that they will be protected or covered in the
event of specific misfortune or accident. It is a
type of insurance that covers losses resulting from injuries to people.
