Protecting Homeowners from Disaster Act of 2025

The proposed legislation aims to broaden the eligibility for deducting personal casualty losses on federal income taxes. Currently, such deductions are limited to losses incurred within federally declared disaster areas, significantly restricting who can claim this financial relief. This bill would repeal this limitation , allowing taxpayers to claim deductions for personal casualty losses regardless of the official disaster declaration status of their area. The amendment specifically targets Section 165(h) of the Internal Revenue Code of 1986 to remove the restrictive paragraph (5). This change is intended to provide broader financial relief to individuals who suffer property damage from various unforeseen events, applying to losses sustained in taxable years beginning after December 31, 2024.