Tax Deductions for Losses due to Hurricanes
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. If you live in Ulster or Dutchess County then you may qualify for this deduction!
Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. Businesses can qualify for the credit too. Other special exceptions to the regular casualty and loss rules also apply that make it easier to qualify for the credit.
If you had losses of more than $100 as a result of last year’s hurricanes then call our office for assistance in completing form 4684 and make sure you get all the deductions you deserve.