Are hurricane insurance deductibles deductible? I was affected in Sep by Hurricane Imra and my Insurance Deductible was $5520. Just paid in 2018 after work completed.

[joem15]

I wanted to know if the deductible for Hurricane Irma is a deductible expense. I paid the deductible in 2018 once the work on my home was finished but not sure if I have to update my 2017 returns if it is considered a loss or it can be taken as a loss on my 2018 returns. I am in FL and the area I live in the eye of the hurricane went over so it was considered a disaster area at the time. 

[Carl]

Homeowner Insurance payouts and deductibles you pay are not reported on any tax return and never deductible. They add to your cost basis of the property, and it has absolutely no effect on your taxes until the year you sell the property. There are exceptions. But that's only if you profit from the insurance payout. If you paid the deductible, then you didn't profit from any payout. Such profit would only occur if the payout exceeded what you originally paid for the property in the year you purchased it.

[SweetieJean]

I think OP is asking if they qualify for the Casualty Loss deduction.

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4308978-insurance-deductible-loss">https://ttlc.intuit.com/questio...>

[Carl]

Oh! (I could'a had a V-8!) That's so obvious now. Just work it through the Casualty & Thefts section under the Deductions & Credits tab. It is "IMPORTANT" that you click the "learn more" links on the screens as you work it through, and even more important that you follow the guidance in the additional information provided. More than likely, it only adds to your cost basis and makes no difference in your tax liability. But you won't know for a fact, until you work it through the program.

[Rainman12]

Also a factor: 2018 AGI. If over $54k, OR you don't itemize, deduction unlikely. Actual 2018 rules not yet written, but expected to follow prior years: Deductible loss must exceed 10% of AGI-100 ...

[SweetieJean]

Effective beginning in 2018, this deduction has been eliminated, with the exception of casualty losses suffered in a federal disaster area.

[Anonymous]

yes you can.  an example say loss $20,000 insurance pays $15,000 the difference our $5,000 deductible which would becoame the dedcution.   the same holds true on deductible for vehicles.