35 Miss. Admin. Code Pt. III, Subpt. 6, Ch. 01 — Casualty Losses of Individuals

100 A casualty loss is a loss due to some sudden, unexpected or unusual event. Casualty losses
include losses caused by fire, storm, shipwreck, hurricane, flood, quarry blast, vandalism,
sonic boom, earthquake or earth slide.
101 For the purpose of this regulation, a "disaster loss" is a casualty loss that occurs from an
event in an area that the President of the United States declares as a disaster area warranting
Federal assistance.
102 Mississippi Law differs from Federal Law in the carryback and carryover provisions.
Normally, casualty losses must be used in the year of occurrence. An exception to this is a
disaster loss as defined above. Disaster losses may be carried back 3 years and carried
forward 7 years. Casualty losses that occurred to property used in a trade or business do not
qualify as a disaster loss. For treatment of these losses, see the regulation on casualty losses
incurred in a trade or business.
103 The amount of a casualty loss shall be computed the same for Mississippi purposes as for
Federal purposes. Each separate casualty, theft and disaster loss in excess of $100.00 is
deductible to the extent that the total losses after the $100.00 deduction per loss exceeds
10% of adjusted gross income.
104 Disaster losses are computed the same way with certain limitations. In the year of the loss,
for the carryback or carryover computations, a taxpayer may not deduct his personal
exemptions, a disaster loss carryback or carryover from another year, or a net operating loss
deduction from another year. The carryback and carryover amount is limited to the net
disaster loss after the computation in the preceding paragraph.
105 A disaster loss occurring after the end of the taxpayer's filing year, but before the due date
of the return, may deduct such loss on the aforementioned return. The order of carryback
and carryover is as follows:

# 1.

Third preceding taxable year;

# 2.

Second preceding taxable year;

# 3.

First preceding taxable year;

# 4.

First succeeding taxable year;

# 5.

Second succeeding taxable year;

# 6.

Third succeeding taxable year;

# 7.

Fourth succeeding taxable year;

# 8.

Fifth succeeding taxable year;

# 9.

Sixth succeeding taxable year; and

# 10.

Seventh succeeding taxable year.
106 Example. In March, 1986, the taxpayer suffers a casualty loss from the flooding of his
personal residence. The casualty sustained is $80,000, computed in accordance with
provisions of the Internal Revenue Code, Rules, Regulations and Revenue Procedures. The
taxpayer elects to deduct the loss on his return for the preceding year. The original 1985
return reveals the following data:
Husband Wife
Net Income (Adjusted Gross Income) $30,000.00 $15,000.00
Itemized Deductions:
Medical Expenses $ 400.00
Taxes 1,500.00
Misc. Deductions 100.00
Interest Expense 3,500.00
Contributions 2,000.00
7,500.00 .00
Balance 22,500.00 15,000.00
Personal Exemption
Married 9,500.00
Dependents (2 Children) 3,000.00
7,500.00 5,000.00
Taxable Income 15,000.00 10,000.00
Tax Due $ 950.00 $ 600.00 $ 350.00
Computation of Net Casualty Loss-Form 62-170-Amended Return
Return For 1985
Taxable Income Before
Personal Exemption: $22,500.00 $15,000.00
Casualty Loss $80,000.00
Per Casualty Deductible ( 100.00)
10% AGI Limitation ( 4,500.00)
60,400.00 15,000.00
Net Casualty Loss $37,900.00 $ .00
Refund Due Taxpayers $950.00
Application of Net Casualty Loss.
1982 Return Gross Income $25,000.00 $10,000.00
Net Casualty Loss Balance from 1985 (27,900.00) (10,000.00)
Balance $ (2,900.00) $ ( .00)
1983 Return-Gross Income $25,000.00 $10,000.00
Net Casualty Loss Balance from 1982 ( 2,900.00) .00
1983 Gross Income after Carryback $22,100.00 $10,000.00
Note that a net casualty loss carryback or carryover is deducted from gross income
(before itemized deductions and personal exemption.)
107 (Reserved)
108 (Reserved)