Protecting Homeowners from Disaster Act of 2025

This bill repeals a limitation that previously restricted tax deductions for homeowners who suffered property damage from disasters. It directly affects homeowners who experience casualty losses (like from floods or storms) by allowing them to deduct those losses on their federal taxes. The key change removes a specific rule in tax law (Section 165(h)(5) of the Internal Revenue Code), meaning homeowners can now claim full deductions for qualifying disaster-related property damage. The change applies to losses incurred in taxable years starting after December 31, 2024.