①The Casualty Loss that a Resident filing a Tax Return has incurred in any of the three years prior to the relevant year (other than an amount deducted in or before the previous year pursuant to the provisions of this paragraph or Article 72, paragraph (1) (Casualty Loss Deduction)) is applied as a deduction pursuant to Cabinet Order when the amount of gross income, retirement income, or timber income for the year of the return is calculated.

②The provisions of the preceding paragraph apply only if the Resident referred to in that paragraph files a Tax Return for income taxes in the year in which the Casualty Loss arises and if the Resident continues to file a Tax Return thereafter.

③A deduction under paragraph (1) is referred to as a deduction for carryover of casualty loss.