Storm Damage Tax Write-Off

6/10/2022 (Permalink)

Roof Damage and Tax Write-Off Benefits

When your Cedar City, UT, the property has suffered from serious storm damage, the recovery efforts and expenses add up rapidly. Fortunately, the losses may be covered by a tax-deductible if your insurance company didn't cover them. (If your property is insured, but you didn't file a claim, you won't be eligible for the write-off.)

What type of storms could prompt the qualification for deductions?

• Blizzards
• Earthquakes
• Flooding
• Hurricane
• Tornadoes

Any of these natural disasters could ruin carpeting, drywall, and furnishings. Hopefully, your insurance coverage will provide for most of the cleanup and repair costs, but many property owners are still left with financial losses. This is where the tax write-off comes in; basically, if you can show a direct connection between the storm, you can apply for the deduction.

A Break for Business Property Owners

When rules for claiming this deduction for your business property are a little more relaxed than the rules for private property. For example, residential property owners must subtract $100 and 10 percent of your adjusted gross income from their deductible amount. Residential property owners must itemize to claim the deduction, but commercial property owners can file as nonitemizers. If you're preparing your own taxes, research related IRS publications and specifically #547 which covers casualties, disasters, and thefts.

Natural Disaster Areas

If storm damage takes place in an area that has been declared a Natural Disaster Area by the U.S. president, it is possible to deduct casualty losses from the tax return for the current year or from the previous year. This opportunity to amend a past return allows you to determine which would give you the bigger refund check.

Available Resources Provide Help

Storm damage can prompt serious repair costs and lead to difficult financial losses. You'll find that working with property disaster repair and cleanup professionals, insurance representatives, and tax advisors is a good way to get a clear picture of the available resources. When your Cedar City, UT, property looks like it was hit by a hurricane (because it was,) be sure to use every available resource to rebuild and get back to work.