Treasury Regulations · 26 CFR
§ 20.2054-1. Deduction for losses from casualties or theft.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 2054
Cite as 26 CFR § 20.2054-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Source
- T.D. 6296, 23 FR 4529, June 24, 1958; 25 FR 14021, Dec. 31, 1960, unless otherwise noted.
- Issued under
- 26 U.S.C. § 2054
- Length
- 144 words · about 1 min to read
- Cross-references
- cites 1 Code section and 1 regulation; cited by 1
A deduction is allowed for losses incurred during the settlement of the estate arising from fires, storms, shipwrecks, or other casualties, or from theft, if the losses are not compensated for by insurance or otherwise. If the loss is partly compensated for, the excess of the loss over the compensation may be deducted. Losses which are not of the nature described are not deductible. In order to be deductible a loss must occur during the settlement of the estate. If a loss with respect to an asset occurs after its distribution to the distributee it may not be deducted. Notwithstanding the foregoing, no deduction is allowed under this section if the estate has waived its right to take such a deduction pursuant to the provisions of section 642(g) in order to permit its allowance for income tax purposes. See further § 1.642(g)-1.
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Regulations it cites
Cited by 1 other regulation
Where it sits in 26 CFR
- Subchapter B Estate and gift taxes
- Part 20 Estate tax; estates of decedents dying after august 16, 1954
- Taxable Estate
Nearby sections
- § 20.2053-7 Deduction for unpaid mortgages.
- § 20.2053-8 Deduction for expenses in administering property not subject to claims.
- § 20.2053-9 Deduction for certain State death taxes.
- § 20.2053-10 Deduction for certain foreign death taxes.
- § 20.2054-1 Deduction for losses from casualties or theft.
- § 20.2055-1 Deduction for transfers for public, charitable, and religious uses; in general.
- § 20.2055-2 Transfers not exclusively for charitable purposes.
- § 20.2055-3 Effect of death taxes and administration expenses.
- § 20.2055-4 Disallowance of charitable, etc., deductions because of “prohibited transactions” in the case of decedents dying before January 1, 1970.