Hurricane Ian expenses in 2023 and 2024.

[rualighthousenut73]

Hello

We had significant damages to our home and rental property from Hurricane Ian.  Our insurance company went into receivership and never paid up.  We had to get an attorney to get anything from FIGA but that isn't happening until 2025.  So we had expenses in 2022, 2023 and 2025 but most of the expenses are in 2023.  Do I do a amended return for 2023 for the expenses I know FIGA isn't paying for (or isn't covering) and then add the legal expenses in 2025?  Also, we had Ian expenses for our rental property that is reported as normal business expenses in 2023 and there are more in 2024.  Would I get more back if I file an amended return for 2023 to pull out the expenses related to Ian and report the hurricane related 2024 expenses?  

[AmyC]

1. You will do an amended return. I recommend you wait. The casualty loss is filed on Form 4684 and allows the lower of basis or FMV decline minus reimbursements. Until the money is in your hand, the amount can change. See Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property)

2. The rental house is not personal use property. I assume it is passive income but it could be your business. See the rules here. Amending may not affect your rental at all. You won't be able to enter 2024 rental expenses on your 2023 rental return.