Hurricane MichaelPosted on October 31st, 2018
Individuals in the federally declared disaster area related to Hurricane Michael can claim storm-related losses on property not used in a trade or business as an itemized deduction. The deduction is for losses that are not reimbursed by insurance or otherwise. The losses must exceed $100, and the total amount of losses can be deducted only to the extent that they exceed 10% of your adjusted gross income.
Be sure to keep good records – lists of damaged items, pictures, repair receipts, etc., as support documentation for your losses. Be sure and include a summary of your losses and insurance reimbursements with the other tax documents that you bring to your tax preparer.
If you were to suffer a loss of non business use property related to a casualty or theft that was not related to a federally declared disaster, there is no longer a deduction allowed on your return. You may want to check your insurance coverage and make sure it is sufficient.
Contact us if you have questions about claiming casualty losses on your individual tax return.