I was affected by Hurricane Ida in August 2021. TurboTax asked if I was affected by a Federally declared natural disaster in 2021 and I was - declaration date August 29, 2021. But Turbo Tax further says, "Select yes only if you were affected by a federally declared natural disaster that was declared before February 19, 2020. How is that possible? Is my answer yes or no?
You should answer "No" to that question as that is a special circumstances situation (a qualified disaster loss). However, you can still make a deduction claim for a loss that exceeds 10% of your Adjusted Gross Income under the Federal Casualty Loss category or disaster loss for a business. Here is IRS Publication 547 for reference.
You should answer "No" to that question as that is a special circumstances situation (a qualified disaster loss). However, you can still make a deduction claim for a loss that exceeds 10% of your Adjusted Gross Income under the Federal Casualty Loss category or disaster loss for a business. Here is IRS Publication 547 for reference.