Final answer:
It is true that casualty gains and losses from nonpersonal use assets are not netted against those from personal use assets, as they have different tax treatments according to the IRS rules.
Step-by-step explanation:
It is true that casualty gains and losses from nonpersonal use assets are not netted against casualty gains and losses from personal use assets. Casualty losses reflect the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.
Nonpersonal use assets are typically business or investment properties, whereas personal use assets are possessions held for personal use.
When it comes to tax treatment, the Internal Revenue Service (IRS) has specific rules for reporting and deducting casualty gains and losses. The distinction between nonpersonal and personal use assets is important because it affects how these gains and losses may be deducted.
Personal use property losses can only be claimed as itemized deductions subject to certain limitations, whereas losses on nonpersonal use property can offset other gains, such as those from the sale of business assets. Therefore, the netting process is separated based on the type of asset.