Article 72Casualty Loss Deduction

①If there is any loss on assets owned by a Resident or that Resident's spouse or any other relative whose living expenses are paid from the same resources as the Resident (other than assets prescribed in Article 62, paragraph (1) (Loss of Assets Not Necessary in Everyday Life, Due to Disaster) or Article 70, paragraph (3) (Amount of Disaster-Related Loss on Business Assets)) due to Disaster, robbery, or misappropriation (this includes if the Resident pays any unavoidable expense prescribed by Cabinet Order in connection with a Disaster, robbery, or misappropriation), and the total amount of such losses for the year (including any amount spent on the aforementioned unavoidable expenses but excluding any part of the loss covered by insurance benefits, compensation for damage, or anything similar to these; hereinafter referred to as the "amount of losses" in this paragraph) exceeds the amount that is set forth in any of the following items for the category of case set forth in the item, the part of the total amount of losses that exceeds the amount set forth in the relevant item is allowed as a deduction from the Resident's gross income, retirement income, or timber income for the year:

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

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