To be clear, the loss is still deductible. Just not as deductible as it could have been.
It's the difference between Ian being a qualified federal disaster but not eligible for qualified disaster losses.
Form 4684
Section A Line 11: Enter $100 ($500 if qualified disaster loss rules apply; see instructions)
You will enter "$100.00"
From Instructions:
Line 11
If you sustained a qualified disaster loss, including those sustained in 2022 (this is what screws people up), add the amounts on line 4 of all Forms 4684. Compare the sum with the amount on line 10. If the amount on line 10 is larger, enter $500 on line 11 of the Form 4684 reporting the qualified disaster losses.
If the amount on line 10 is smaller, or if you are reporting a disaster loss, enter $100 and complete the remainder of the form without applying the special rules for qualified disaster losses.
When the instruction were printed, Ian (Sept 28, 2022) was not listed as a qualified disaster loss for the tax year, even though it had a FEMA disaster loss ID of DR-4673-FL.
Two documents to look at, and why Ian wasn't (isn't) eligible for qualified disaster losses:
This describes the issue perfectly: https://donalds.house.gov/uploadedfiles/hurricane_ian_qualified_loss_dilemma_pdf.pdf
This is the legislation: "H.R.1331 - To treat Hurricane Ian as a qualified disaster for purposes of determining the tax treatment of certain disaster-related personal casualty losses."
Unfortunately for us, while the legislation was introduced by Rep. Steube, W. Gregory [R-FL-17] on 03/01/2023 and referred to the House Ways and Means Committee, it was never taken up and died. I was hoping for this which is why I filed an extension to file my 2022 taxes.
It was very simple. Here's the summary: "This bill treats Hurricane Ian (occurring on and after September 22, 2022) as a qualified disaster area for purposes of the disaster-related personal casualty loss tax deduction."
Here's the link: https://www.congress.gov/bill/118th-congress/house-bill/1331?s=1&r=83
You can read the entire bill, see co-sponsors (No NY support, probably because Florida didn't support Super Storm Sandy emergency funds).
There was no will in Congress to force this bill forward. More importantly, no action by our Governor to shame Congress into moving it forward (a press conference with the Bill's sponsor, and maybe with all Florida Reps and Senators. NOTHING.
