"NEWS NOTES"
From the office of Angle, Zaebst & Associates |
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Storm Damage? Here's what you need to know. |
Did you know property losses caused by damage from certain types of storms and similar "casualties" - from wind and rain to floods and tornadoes - are tax deductible. However, these losses must exceed 10% of your total income.
Many unexpected property damages can qualify for the casualty loss deduction. The deduction can be claimed for damage caused by, among other things: broken water pipes; burst water heaters; cave-ins; drive-way break-up; freeze/frost damage; storms; snow; lightning; rain (unusual and intense); fires; floods; droughts; earthquakes; hurricanes; and landslides. If it is sudden, an "act of God," or is otherwise unanticipated, it usually qualifies for a casualty loss deduction.
Keep records that show:
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The type of damage and when it occurred;
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The loss that was a direct result of the casualty;
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You are the owner of the property (or lessee of property you are contractually liable to another for if damaged); and
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Part or none of the damage was reimbursed by insurance, or a claim for reimbursement exists for which you expect a recovery.
You cannot deduct any losses for which you have received reimbursement either by insurance or another party. Only unreimbursed losses will be deductible and your casualty loss is only deductible for the tax year in which the loss occurs.
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