If violent weather has caused damage to your property, you may be able deduct a part of the cost of the damage from your taxes, if the event was a federally-declared disaster.

You are generally eligible to deduct losses that result from federally-declared disasters. This can include, here in the Midwest, such mundane items like floods or tornados, plus the occasional derecho. In California, it might include (per Jimmy Buffett) riots, fires, mudslides and sushi in the mall*. Remember that the deduction amount is limited by any amount that you recover by way of insurance.

Riots and sushi may not actually included. Consider it poetic license.

If you’re in a presidentially-declared disaster area, there are special rules that apply to you. You are eligible to deduct those losses that occurred in the specific event in a current tax year on either your current or prior year tax return, whichever is

Keep reading this article on Financial Ducks In A Row.

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