| Deducting Casualty Losses - subject to 10% of AGI
Dear Curlopt,
The good news is that yes, you may be able to deduct some of the expenses paid to fix your home from the damage sustained provided you meet some of the IRS limitations.
"IRS Code Sec 165 (c)(3) limits any loss in the case of non-business property of individuals arising from fire, storm(flood), or other casualty. Each loss is subject to a $100 floor, and the total losses are deductible to the extent that the total loss amount for the year exceeds 10% of the Taxpayers Adjusted Gross Income."
Thus for your situation. the total damage sustained appears to be $35,000 for which the insurance company reimbursed you most of that amount. So, the amount that was unreimbursed is subject to a $100 floor, and the balance needs to exceed 10% of your AGI. The schedule to report the damage is Form 4684. The net amount is then carried to Line 19 of Schedule A. | 
