What qualifies as a casualty loss?

A casualty loss is defined as a loss that results from the damage to property due to a sudden, unexpected, and identifiable event. This definition emphasizes significant damage that can impact the property's value. The complete or partial destruction of property from such an identifiable event qualifies as a casualty loss because it directly correlates to the unexpected nature of the event causing the damage, which could stem from various incidents like natural disasters, accidents, or vandalism.

The other options do not fit the criteria for a casualty loss. Incidental damage to a vehicle typically refers to minor issues that do not arise from major incidents and therefore lack the requisite severity. Normal wear and tear, on the other hand, is a regular degradation of property over time and does not result from a specific identifiable event, excluding it from casualty loss classification. Finally, while a mild storm causing minor damages may seem hazardous, if the damages are not substantial or significant, they fall short of the level necessary to qualify as a casualty loss under tax guidelines.