 |
|
Can I deduct losses from Declared Disaster Areas on my tax
return?
|
| Casualty losses are generally
tax deductible on your tax return only in the tax year the casualty
loss occurred.
However, if you have a tax deductible casualty loss from a disaster in an area that is officially
designated by the President of the United States as eligible for federal disaster
assistance, a Declared Disaster Area, you can choose to deduct that casualty
loss on your tax return for the tax year immediately
preceding the casualty loss tax year. In other words, you may treat the Declared Disaster
Area loss as having occurred in
either the current tax year or the previous tax year, whichever provides the best tax results for
you on your tax return. If you have already filed your tax return for the preceding
tax year, the
Declared Disaster Area casualty loss may be deducted
by filing an amended tax return, Form 1040X. If you have been impacted by a Presidentially declared
disaster, the IRS can help you by delaying collection of tax you owe and by eliminating
tax penalties and interest if the disaster has caused you to file
your tax return late or pay your tax late. The IRS can
provide copies or transcripts of previously filed tax returns free of charge, and you may
be able to get some money back from the IRS right now. Their disaster services page,
Help During Disasters
and Emergencies, provides more detail and provides a link to the Federal Emergency
Management Agency (FEMA).
Also check Around
the Nation for any additional information your local IRS office may have provided.
|
|
 |
Related information about Declared Disaster Areas |
|
|
Involuntary Conversions
Itemized
Tax Deductions
Directory |
|
IRS publications about
Declared Disaster Areas:
For additional information on disaster area losses (including flood losses),
refer to Tax Topic 515, or
IRS Publication 547, Casualties,
Disasters and Thefts (Business and Non-Business). IRS Publication 584, Nonbusiness
Disaster, Casualty, and Theft Loss Workbook, can be used to help you catalog your
property. Also see IRS Publication 17,
Your Federal Income Tax. |
|
 |
|
 |
Ask Julian Block your IRS and tax questions! |
|
|
 |
If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
|
|
|
|
