Hurricane Helene has impacted millions across several southeastern states, becoming yet another weather-related catastrophe in what has been a challenging year. From hurricanes and tornadoes to the wildfires sweeping the West, natural disasters have caused substantial losses for many taxpayers. If your family or business has been affected by a recent disaster, you may be eligible for a casualty loss deduction and federal tax relief.
A casualty loss can result from the damage, destruction or loss of property due to any sudden, unexpected or unusual event. Examples include floods, hurricanes, tornadoes, fires, earthquakes and volcanic eruptions. Normal wear and tear or progressive deterioration of property doesn’t constitute a deductible casualty loss. For example, drought generally doesn’t qualify.
The availability of the tax deduction for casualty losses varies depending on whether the losses relate to personal- or business-use items. Generally, you can deduct casualty losses related to your home, household items and personal vehicles if they’re caused by a federally declared disaster. This federal declaration of a, “natural disaster,” is a key requirement for federal assistance.
Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).