Protecting Homeowners from Disaster Act of 2025

The Protecting Homeowners from Disaster Act of 2025 would modify federal tax law regarding deductions for personal casualty losses. Currently, homeowners can only deduct unreimbursed personal casualty losses if those losses result from a federally declared disaster. This bill would remove that restriction, allowing homeowners to deduct personal casualty losses regardless of whether they occurred during a federally declared disaster.

If enacted, this change would apply to losses sustained after 2024. The practical effect would be that homeowners who experience property damage from events not officially declared as federal disasters—such as localized fires, floods, or other accidents—could potentially deduct those losses on their federal income taxes. This could provide tax relief to homeowners whose losses do not qualify under the current federal disaster declaration requirement.