Hurricane Florence

Ask Kim: Deducing disaster losses on your tax return

Ask Kim: Deducing disaster losses on your tax return

Q: My house was damaged by Hurricane Florence, and I have a 2 percent deductible on my homeowners insurance, which is about $7,000. Will I be able to deduct the $7,000 on my tax return?

A: Maybe, but the calculation is complicated and the laws changed this year. In the past, everyone could deduct unreimbursed casualty losses - whether their home was damaged by a major disaster (such as a hurricane, earthquake or major wildfire) or by a calamity that damaged only their own home (such as a fire).

But last year's tax law changed the rules for 2018 through 2025. Now you can only take the casualty loss deduction if your home is in a federally declared disaster area. You meet...

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