CLAIMING A CASUALTY LOSS AFTER HURRICANE
October 16, 2019 - Douglas Myser
Claiming a casualty loss after hurricane. Hurricane Dorian was one of the most powerful hurricane's to ever make landfall in the United States. A category 5 storm has been called the strongest storm with maximum sustained winds of over 185 miles per hour, according to the National Hurricane Center. Although gradual weakening i, Dorian unleashed major damage before it finally subsided. The strong winds, heavy rains, and storm surges impacted the southeastern United States from Florida to New Jersey, as the slow moving storm moved north, putting lives and property at risk. In years past, taxpayers who suffered an economic loss due to a natural disaster like a hurricane could claim a deduction on their federal income tax return. That changed in 2018. Under the Tax Cuts and Jobs Act, losses for individuals are now only deductible to the extent they are attributable to a federally declared disaster. Additionally, since you can no longer claim any miscellaneous itemized deductions, business casualty losses of property used in performing services as an employee cannot be deducted or used to offset gains. Claiming a casualty loss after hurricane.
A federal casualty IRS loss involves casualty or theft loss of personal use property that is attributable to a federally declared disaster. The casualty loss must occur in a state receiving a federal disaster declaration. If the loss isn't attributable to a federally declared disaster, it isn't a federal casualty loss, and you may not claim a casualty loss deduction unless an exception applies. For a list of federally declared disaster areas, check out the Federal Emergency Management Agency (FEMA) website. You'll find the list specifically attributable to Hurricane Dorian there.
Typically, a casualty loss is defined as the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event. That includes a hurricane, flood, tornado, fire, earthquake, or even volcanic eruption. A casual loss does not include normal wear and tear or damage that happens over time, like termite damage.
If you had a disaster and could not claim a casualty loss, and could not pay your tax debt, we can help. We are a Tax Resolution Company that goes back to the very first days of the industry. Our Tax Relief help can allow you to determine options for lowering your tax debt, like the IRS Fresh Start Program. We have Superior Tax Professionals, and our Tax Resolution can include taking your case to Tax Court if needed. Most don't need Tax Court, just Tax Resolution Services which provides options for dealing with your tax debt. Call for a Free Consultation Today 1-888-689-7861