Tax Deductions for Disaster Relief

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Tax Deductions for Disaster Relief

Whether it’s a catastrophic hurricane like Ian or a California wildfire, disaster can strike and cause significant property destruction. Insurance can help, but it’s out of pocket for some damage not covered.
But taxpayers hit with a catastrophic event and have sustained a "casualty loss" should check to see if it's a federally declared disaster. If so, it could lead to some tax savings.
Casualty Disasters and Tax Deductions
Under section 165 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, the Internal Revenue Service (IRS) allows a tax deduction for a loss sustained during the tax year of the federally declared disaster. Casualty losses for tax years 2018 to 2025 are eligible for these tax deductions if they are in federally declared disaster areas. If the loss occurred before 2018, then it is not eligible for a tax deduction....

Source: Tax Deductions for Disaster Relief

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