①The amount of a loss that a Resident incurs in respect of anything prescribed by Cabinet Order as an asset that is not ordinarily necessary in everyday life, due to Disaster, robbery, or misappropriation (other than any part of the loss covered by insurance benefits, compensation for damage, or anything similar to these) is deemed to be the amount that, pursuant to Cabinet Order, is to be deducted to calculate capital gains in the year in which the day that the person incurs the loss falls or in the following year.

②Cabinet Order provides for the necessary particulars concerning the calculation of the amount of a loss as prescribed in the preceding paragraph.