rental property and hurricane damage

Forum|Forum|3 years ago
March 19, 2023
1 reply
11 views

I am confused by how to handle my hurricane damage and insurance payout on a rental property that I have in Florida. In 2022 hurricane Ian did about $28,000 in damage and the insurance provided a check for $20,000. All repairs were done before the end of 2022 except the roof payment which was 17,000 paid on 1/3/2023. I know I can only deduct the actual losses of the $8000 but how do I split it between the roof paid in 2023 and all the other expenses paid in 2022?

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RobertB4444

Level 15

You put it all on 2023. You need the 17K in roofing expenses to qualify the $8K in deductions so you'll have to wait until next year to take it.

@Konabella

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KonabellaAuthor

Level 2

So I can wait until next year to take ALL of the expenses for repair due to the hurricane damage? Even the drywall, fence, tree removal and other repairs that I paid in 2022?

I rent the home for 3 months only through the year. Should I claim enough expenses for repair to offset the income that I get for rental as it would easily cover it? I guess I am asking if I can pick and choose what I claim due to hurricane or does it all need to be claimed on the same year?

Thank you for your response!

AmyC

Level 15

The IRS allows taxpayers to go back a year to claim expenses. You could put all of it on the 2022 return. See Disaster Assistance and Emergency Relief for Individuals and Businesses.

Claiming repairs means normal stuff, generally. See 2022 Instructions for Schedule E (2022) You will want to claim the disaster related loss. See Publication 547 (2022), Casualties, Disasters, and Thefts.

I think the smart bet would be to claim it all together on 2022 as a disaster loss. It is your tax return which means ultimately you decide where you want to put expenses and which year. You could file an amended 2021 to claim the 2022 expenses. If you had a higher income, amending might be better for you.

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