Recent changes to the Individual Income Tax Code eliminated deductions for casualty losses (storm damage) beginning in Tax Year 2018, unless the President declares a Federal Disaster Area. Prior to the Tax Changes, individuals could claim certain personal casualty losses not compensated by insurance or otherwise as itemized deductions, including losses arising from Fire, Storm, Theft.
Two limitations applied to qualify for a deduction: (1) a loss had to exceed $100, and (2) aggregate losses could be deducted only to the extent they exceeded 10% of adjusted gross income (AGI).
These rules are for tax years 2018 through 2025. The personal casualty and theft loss deduction isn’t currently available, except for casualty losses incurred in a federally declared disaster area.
Hopefully our representatives in Washington can help secure such a disaster declaration that could help people in our area that have been affected.
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