Not only disasters but also theft and embezzlement are eligible; fraud is not. In addition to the damage amount, costs for restoration or demolition can also be counted as disaster-related expenses. To apply the casualty loss deduction, you must record relevant items on your tax return and attach or present receipts for unavoidable expenses related to the disaster, etc. If your income for that year is 10 million yen or less, instead of the casualty loss deduction, you may apply the income tax reduction/exemption under the Disaster Relief Act (explained later).