MODIFICATION OF DEDUCTION FOR PERSONAL CASUALTY LOSSES.

SEC. 11044. MODIFICATION OF DEDUCTION FOR PERSONAL CASUALTY LOSSES.(a) In General.—Subsection (h) of section 165 is amended by adding at the end the following new paragraph:“(5) Limitation for taxable years 2018 through 2025.—“(A) In general.—In the case of an individual, except as provided in subparagraph (B), any personal casualty loss which (but for this paragraph) would be deductible in a taxable year beginning after December 31, 2017, and before January 1, 2026, shall be allowed as a deduction under subsection (a) only to the extent it is attributable to a Federally declared disaster (as defined in subsection (i)(5)).“(B) Exception related to personal casualty gains.—If a taxpayer has personal casualty gains for any taxable year to which subparagraph (A) applies—“(i) subparagraph (A) shall not apply to the portion of the personal casualty loss not attributable to a Federally declared disaster (as so defined) to the extent such loss does not exceed such gains, and“(ii) in applying paragraph (2) for purposes of subparagraph (A) to the portion of personal casualty loss which is so attributable to such a disaster, the amount of personal casualty gains taken into account under paragraph (2)(A) shall be reduced by the portion of such gains taken into account under clause (i).”.131 STAT. 2088(b) Effective Date.—The amendment made by this section shall apply to losses incurred in taxable years beginning after December 31, 2017.