You would deduct the amount of loss in excess of the FEMA reimbursement. The loss is based on the Fair Market Value (FMV) of your property before the flood and the FMV of the property after the flood.
If your damage was due to the 2016/2017 hurricanes, special treatment is available. 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 in blue print - 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 - whether it was due to the hurricanes or not.
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.
