If a hurricane has damaged your property, you may be eligible for a tax deduction to help offset the financial impact. Here’s what you need to know about claiming hurricane-related casualty losses on your tax return per the current laws.
How to Claim Hurricane Losses
✅ Itemized Deduction – If you itemize deductions, you can claim hurricane losses on Schedule A (Form 1040). For personal-use property, you must:
Subtract $100 per event after accounting for any salvage value or insurance reimbursement.
Add up all losses and subtract 10% of your Adjusted Gross Income (AGI) to determine the deductible amount. This is per the CURRENT federal laws.
✅ Qualified Disaster Loss – If the hurricane was part of a federally declared disaster, you don’t need to itemize. Instead:
Reduce each loss by $500, not $100.
Skip the 10% AGI rule, making it easier to claim the deduction.
Filing Requirements
📄 Report hurricane losses on Form 4684 (Casualties & Thefts):
Use Section A for personal-use property.
Use Section B for business/income-producing property.
💡 Pro Tip: Keep detailed records, including receipts, photos, and insurance statements, to support your claim.
Hurricane damage can be overwhelming, but Kamish & Associates is here to help you navigate the tax relief process. Contact us today for expert guidance!
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