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The proper treatment of a $2,500 loss from a sewer backup under the Tax Cuts and Jobs Act (TCJA) revolves around whether such losses can be claimed as itemized deductions. Under TCJA, for individual taxpayers, personal property losses—such as those from a sewer backup—are not deductible on Schedule A unless they qualify as casualty losses.

To qualify as a casualty loss, the loss must arise from a sudden, unexpected, or unusual event. However, typical maintenance issues like sewer backups do not generally meet that criterion. Personal casualty losses are limited and can only be deducted if they occur due to a federally declared disaster.

Since a sewer backup does not generally qualify as a casualty loss and individual taxpayers under TCJA have limits on claiming personal losses, the notion of deducting a $2,500 loss from sewer backup on Schedule A is not supported.

Thus, the correct answer reflects an understanding that there are strict guidelines around what constitutes a deductible loss under the TCJA. This understanding clarifies the conditions under which losses can be itemized and affirms the exclusion of such backup losses from deduction eligibility.