Tax break help storm survivors
Survivors of Hurricanes Harvey, Irma and Maria ara tattered, but they’re also tough – and ready to rebuild. If you were affected by the storms (or another natural disaster), the casualty loss deduction can help. This tax break enables you to deduct the cost of damage to your home or personal property on your 2017 federal return.
To calculate your deduction;
TOTAL YOUR LOSSES
You loss is your adjusted basis in the property before the casualty (typically, the amount you paid for it) or the decrease in the property’s fair market value, whichever is less.
Reduce your loss amount by insurance proceeds or other payments you receive.
APPLY THE $100 RULE
Further reduce the los by $100. If you suffered more than one casualty event during the year, reduce each loss amount by $100.
SUBTRACT 10% OF YOUR AGI
Normally, your loss must exceed 10% adjusted gross income for you to claim a deduction. But disaster legislation has removed this requirement for victims of Hurricanes Harvey, Irma, and Maria.
Other rules and restrictions apply. Contact Us for more details.
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