We need more details about the "accident" to know whether or not the event qualifies as a casualty. If caused by willful act or willful negligence of the OP, then it wouldn't be a casualty loss.
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I think Dennis took the wrong avenue. He should have consulted some law students on campus to see if he was actually liable for the damage. How was the sprinkler head broken? Were there adequate caution signs not to hit, strike, hang weights, etc? Was the head itself defective? What are the clauses in the housing agreement? Etc, etc.
A tax deduction, even if were it allowed, would only result in recovery of 10 or 15% of the cost of repair and replacement, assuming he had modest taxable income. Discounting catastrophic losses, many people have casualty losses, but it is a small percentage that are able to claim any tax benefit.Comment
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