TIL that oil tycoon J Paul Getty was so cheap that when his grandson was kidnapped he absolutely refused to pay the ransom. When his grandson's ear was mailed to him, he agreed to pay the maximum tax deductible amount and loaned the rest to his son... At 4% interest.

Typically no.

As per Form 4684 instructions:

Limitation on personal casualty and theft losses. For tax years 2018 through 2025, if you are an individual, casualty or theft losses of personal-use property are deductible only if the loss is attributable to a federally declared disaster. Personal casualty and theft losses attributable to a federally declared disaster are subject to the $500 per casualty limitation. An exception to the rule above limiting the personal casualty and theft loss deduction to losses attributable to a federally declared disaster applies if you have personal casualty gains for the tax year. In this case, you will reduce your personal casualty gains by any casualty losses not attributable to a federally declared disaster. Any excess gain is used to reduce losses from a federally declared disaster.

For more information, see Disaster Losses, later, the instructions for line 14, and Pub. 547.

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