{"id":377,"date":"2017-09-14T08:12:24","date_gmt":"2017-09-14T13:12:24","guid":{"rendered":"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/?p=377"},"modified":"2020-07-31T13:25:42","modified_gmt":"2020-07-31T13:25:42","slug":"rebuilding-after-hurricanes-harvey-and-irma-recovery-through-tax-deductions","status":"publish","type":"post","link":"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/2017\/09\/14\/rebuilding-after-hurricanes-harvey-and-irma-recovery-through-tax-deductions\/","title":{"rendered":"Rebuilding After Hurricanes Harvey and Irma: Recovery Through Tax Deductions"},"content":{"rendered":"

It is estimated that less than 20% of those affected by Hurricane Harvey<\/a>, and a week later Hurricane Irma, had flood insurance. \u00a0Home owner\u2019s and renter\u2019s insurance policies exclude damage caused by floods.\u00a0 Those affected could be facing catastrophic financial losses.\u00a0 For many, personal savings and federal loan programs may be the only resource available to rebuild. \u00a0However, the federal tax code may provide many of the victims with some recovery through the tax deduction allowed for casualty and disaster losses.<\/p>\n

Taxpayers may deduct on their federal tax returns uninsured casualty and disaster losses sustained for their home, household items, and vehicles. \u00a0A casualty loss is defined as damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption.<\/p>\n

Amount of Loss<\/strong><\/p>\n

If the damaged property is personal-use property or isn\u2019t completely destroyed, the amount of the casualty loss is the lesser of:<\/p>\n