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Internal Revenue Code of 1986

The main body of U.S. federal tax law that governs how taxes are collected and enforced.

Personal Casualty Loss

A loss of an individual's property due to a sudden, unexpected, or unusual event, such as a fire, storm, shipwreck, or theft, that is not covered by insurance or other reimbursements.

Deduction

An amount that can be subtracted from a taxpayer's gross income to reduce the amount of income subject to tax.

Taxable Year

The annual accounting period for keeping records and reporting income and expenses, typically a calendar year (January 1 to December 31) for most individual taxpayers.

Credit or Refund

A claim made to the IRS to receive money back for taxes that were overpaid or for a specific tax credit that reduces tax liability.

Period of Limitation

The legal time frame within which a taxpayer or the government must take action, such as filing a tax return, claiming a refund, or assessing additional tax.

Public Law 115-97

Also known as the Tax Cuts and Jobs Act of 2017, this law made significant changes to the U.S. tax code, including limiting the personal casualty loss deduction.