Casualty Losses, Disaster Losses And Theft Losses Explained.
Casualty losses can result from different causes such as hurricanes, floods, earthquake, explosions, fires, etc. They can cause damage or destruction of your property.
If you suffer any casualty losses, you can claim a tax deduction for your losses on your tax returns.
If you are subject to a casualty or theft loss, you may be able to claim a theft loss tax deduction.
Determine Your Casualty Or Theft Loss Deductions
In order to determine your deduction, you must reduce each casualty or theft loss by $100. Prior to this, you must reduce your loss by any reimbursements.
Furthermore, you must reduce your total casualty or theft loss by 10% of your adjusted gross income.
Tax Deduction For Losses Related To Federally Declared Disasters
There are new tax rules for individuals who suffer losses attributable to disasters federally declared.
According to the new law, all taxpayers are allowed to claim the net disaster loss tax deduction, even if they do not itemize deductions. In addition, the limit of 10% of your adjusted gross income, when determining your casualty or theft loss is removed.
Other tax rule changes may apply, depending on your casualty or theft loss circumstances.
We can determine the proper amount for your casualty or theft loss tax deduction. Contact us today at 713-774-4467!
