First, we would like to express our deepest concerns for homeowners affected by the recent flooding. Unfortunately, many people are quickly realizing the insurance they thought would cover problems like they are now experiencing in fact, does not.
Flood Losses and Your Taxes
With that in mind, a helpful tip from the U.S. tax code: Unreimbursed property and casualty losses in excess of 10% of adjusted gross income (AGI) are fully deductible from your 2013 tax return, subject to a $100 deductible. This applies to cars, homes, etc. More liberal rules apply to business property losses.
Flood Victims in Boulder
And, if you live in Boulder county, where President Obama has declared a presidential disaster area, the losses are deductible on either a 2012 or 2013 tax return. So, if you need immediate money, you can amend your 2012 return and get a refund more quickly.
Flood Related Questions?
Please don’t hesitate to contact us if you’d discuss this or other flood-related questions. Also, if your home is fine, but you have friends or family who are affected, please don’t hesitate to forward this blog post to a friend.
We hope this is helpful for those affected by the floods or those who know people affected.
IRS Circular 230 Disclosure:
Please be advised that any discussion of U.S. tax matters contained within this communication (including any attachments) is not intended or written to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein