Losses; Declared Disaster Area

Im have a question regarding the deductability of losses suffered
during a federally declared natural disaster. I have read IRS
Publication 547, but it did not really answer my question.
Here is the situation:
I suffered losses in a federally declared natural disaster (FEMA
disaster 1735 seen here
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I do have property insurance and they reimbursed me after I payed my
deductible which was $2000. My question: Can I deduct from my taxes
this $2000 insurance deductible? Do the 10% rule or $100 rule apply
to this situation?
Kind Regards,
Reply to
Eric Albrecht
Yes, the $2000 you paid is deductible as a casualty loss, but subject to the 10% of AGI plus $100 rule. Don't forget to deduct the change in FMV of your home. I don't know if Congress ever lowers the 10% rule in disaster areas (for example, saying that amounts above 5% of your AGI are deductible), so check with a local tax preparer. Just to be sure, the $2000 that you paid must be for repairing casualty loss, not for something like fixing a damaged roof.
See page 5 of the publication 547
Example. Your home was extensively dam- aged by a tornado. Your loss after reimburse- rent from your insurance company was $10,000. Your employer set up a disaster relief fund for its employees. Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. You received $4,000 from the fund and spent the entire amount on repairs to your home. In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. Your casualty loss before applying the deduction lim its (discussed later) is $6,000.
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