Since Hurricane Sandy is projected to cause considerable property damage, it may be timely to review the IRS rules regarding claiming a casualty loss. Casualty (e.g., fire and storm) (and theft) losses are claimed on IRS Form 4684.
As with any tax deduction, the taxpayer needs to verify the amount of the loss. Since most taxpayers have homeowners, apartment, or auto insurance, any loss resulting from a casualty is usually verified by an insurance claim. This is the starting point to identify the amount of the loss. From this amount, the insured would reduce it by [Read more…] about DEDUCTING A CASUALTY LOSS