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donna-hargett
New Member

How do I report flood damage to my home? We had to replace some insulation, drywall and 90% of our carpet and padding. No furniture or personal belongings were lost.

The flood was due to heavy rainfall in short amount of time.  We are not in a flood zone and did not receive reimbursement from home insurance.
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bwa
Alumni
Alumni

How do I report flood damage to my home? We had to replace some insulation, drywall and 90% of our carpet and padding. No furniture or personal belongings were lost.

It would be a casualty loss which may or may not be a tax benefit.

A personal casualty loss (including a theft) is deductible if you itemize deductions. The measure of a casualty loss is the fair market value before the casualty, less the fair market value after, less any insurance proceeds. The decrease in market value can be estimated by repair costs that restore the property to its prior condition.

If deductible, the loss must first be reduced by $100, and any remainder is deductible to the extent it exceeds 10% of your adjusted gross income. As examples, if your loss is -

  • 500, you have no deductible loss if your adjusted gross income is over $4,000
  • 1,000, you have no deductible loss if your adjusted gross income is over $9,000

Tax topic 515 has more information and links regarding casualty losses.

Casualty losses are under the deductions and credits tab under the very last item ("Other Deductions and Credits.")


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1 Reply
bwa
Alumni
Alumni

How do I report flood damage to my home? We had to replace some insulation, drywall and 90% of our carpet and padding. No furniture or personal belongings were lost.

It would be a casualty loss which may or may not be a tax benefit.

A personal casualty loss (including a theft) is deductible if you itemize deductions. The measure of a casualty loss is the fair market value before the casualty, less the fair market value after, less any insurance proceeds. The decrease in market value can be estimated by repair costs that restore the property to its prior condition.

If deductible, the loss must first be reduced by $100, and any remainder is deductible to the extent it exceeds 10% of your adjusted gross income. As examples, if your loss is -

  • 500, you have no deductible loss if your adjusted gross income is over $4,000
  • 1,000, you have no deductible loss if your adjusted gross income is over $9,000

Tax topic 515 has more information and links regarding casualty losses.

Casualty losses are under the deductions and credits tab under the very last item ("Other Deductions and Credits.")


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