Yes, you can claim a casualty loss for disaster damages.
You would deduct the amount of loss in excess of any FEMA or any other insurance reimbursement. The loss is based on the Fair Market Value (FMV) of your property before the hurricane and the FMV of the property after the hurricane.
These losses will be subject to a $500 deduction per casualty as opposed to the normal $100 deduction for other casualty losses.
- If you itemize your deductions, you will be able to deduct the loss on Line 28 of Schedule A as a miscellaneous deduction not subject to the 2% limitation.
- If you do not itemize, your casualty loss amount will be added to your standard deduction and reflected on Line 40 of your Form 1040.
Please continue reading for more information on casualty losses in a federally declared disaster area. You can click on any information that is printed in blue ink - they are links to further information.
https://ttlc.intuit.com/replies/6469344
Click on Full instructions for entering a casualty loss in TurboTax for instructions on how to enter your loss.
If your casualty loss was not due to the hurricanes, you would only be able to deduct the loss as an itemized deduction less the $100 deductible, less a 10% of Adjusted Gross Income limitation. You can find your Adjusted Gross Income on Line 37 or 38 of your Form 1040. Per @
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Tax relief for disaster victims
The disaster relief portion of the law provides special tax relief for individuals and businesses in Presidentially-declared disaster areas occurring between January 1, 2018 and 30 days following the date of enactment of the law. Here are some of the provisions providing relief:
- Special rules for qualified disaster-related personal casualty losses: If you were a disaster victim, the provision eliminates the current law requirement that personal losses have to exceed 10% of adjusted gross income and eliminates the requirement that you have to itemize your tax deductions in order to claim your casualty loss.
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