Turbotax (online) - How to enter Hurricane Wilma related casualty deduction

Here's how I did it. I'm not a tax pro so don't rely on my advice. I read the publications and form instructions and I think I did it right, but who knows?

TurboTax will complete the forms for you if you just answer the interview questions. It will ask you for "description" and "date" (Hurricane , Oct.

24) and whether the damage was to personal or business property. Then it asks you which hurricane. Next it asks for a description of the property (residence), date acquired and cost (you will need to input your cost basis for the property -- see the appropriate publications for instructions in computing your basis) and then you input the amount of your insurance reimbursement, if any..

Next it will ask you the fair market value before the loss and after the loss. FMV is what a willing buyer would pay for the property. So I would assume that FMV after the storm would be FMV before the loss minus what it would cost to restore the property to its previous condition.

By answering all of these questions in the TT interview, the program will complete a Form 4684 for you and will transfer the amount of your casualty loss to the appropriate schedule (Sch. A for personal property).

Hope this helps -- and if I'm doing it all wrong, I hope someone else pipes in with a correction!

Normally for casualty losses, you can take your loss after you subtract $100 and 10% of your gross income. However for Hurricane Wilma, because the President declared my area a disaster area, I should be able to deduct the entire loss, without any deductions. But, how do I tell Turbotax that??

TurboTax will ask you in the interview whether or not you were affected by Wilma, Katrina or Rita. When you answer yes it will transfer your data to the appropriate forms.