Question: Last July during a very heavy rainstorm, the gutters and drains near my house overflowed. My house was damaged and I don’t have any flood insurance. Is damage like that to my house a deduction?
Answer: Probably not. You might be thinking of a casualty loss. A casualty loss must be “sudden, unexpected, and unusual.” IRS loves to cite an example of termite damage as none of those three elements. Since you knew your drainspouts and gutters were not clear and since it is not unusual for cluttered gutters to not work properly in a heavy rainstorm, our advice is: you do not have a deduction for a casualty loss.