The Internal Revenue Service (IRS) offers a tax deduction for home casualty losses. This is an itemized deduction, so qualification depends on the personal finances of a taxpayer. Deductions drop taxable income and the amount of tax owed, and can therefore be helpful to a home owner. This article provides advice on Florida real estate casualty loss tax write-offs.
Definition of a Casualty Loss
The Internal Revenue Service defines a casualty loss as the “damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.” It can relate to natural disasters such as tornados or man-made ones such as fire. There are other restrictions offered in IRS Publication 547: Casualties, Disasters and Thefts.
When to Deduct
If the damage took place during an presidentially declared disaster, then you can resubmit your tax return from the previous year to deduct the loss. This can result in a tax refund. Otherwise, property owners must hold off until the next tax filing.
First and foremost, the deduction is only available for damage not covered by insurance and other sources of aid. The total of a deduction depends on the reduction in fair market value of a home as a result of the damage or destruction, the income of the tax payer, and other factors. Federal and state tax laws could vary.
About Advice On Florida Real Estate Casualty Loss Tax Write-offs
Always connect with a tax advisor regarding deduction qualifications, calculating exact amounts, and adapting to federal and state calculations. This blog includes advice on Florida real estate casualty loss tax write-offs and is intended to make you knowledgeable on possible deductions. It does not in any way guarantee that you will be able to include deductions on your specific tax return.