Personal Casualty Gains for individuals for United States Federal Income Tax purposes are defined in section 26 U.S.C.
§ 165(h)(3)(A) of the Internal Revenue Code as the recognized gain of property arising from fire, storm, shipwreck, or other casualty.
The property in question cannot be connected with a trade, business, or transaction entered into for profit.
Along with persons filing as individuals, a married couple making a joint return for the taxable year are treated as one individual.
§ 165(h)(4)(B) Net personal casualty gains are taxed as gains from sales or exchanges of capital assets.