My CPA mentioned that the additional loss from Hurricane Harvey Casualty loss can be carry forwarded and the balance losses can be claimed in next year's tax return

[kesava-chunduri]

For ex: My Casualty loss during Hurricane Harvey is $150k; I was able to claim about $100k in this year's tax return. I still have $50k loss that I cannot claim this year, as I dont have any additional taxes to be returned this year.

So, can i carry forward that $50k for next year and claim it with 2018 tax return? My CPA mentioned, yes for this. But, i still wanted to make sure about it. Please suggest. Thanks!!!

[DanO]

The IRS does allow for a casualty loss that exceeds your income be handled the same as a Net Operating Loss that a business can experience.

The NOL for a qualified disaster can be carried back 5 years, or a waiver can be made to only carryforward the loss to be used in a 20 year period.

To waive the carryback you need to attach a statement with your return that shows that you are choosing to waive the carryback period under section 172(b)(3).  If you have filed your return you can still make this choice by amending your return within the due date of the return and write, "Filed pursuant to section 301.9100-2" at the top of the statement.

If you carryforward you will do so with next year's return.

Click here for IRS Pub 536 covering NOLs