The IRS requires you to subtract $100 from your reported losses involving “personal-use property”: stuff you don’t use for business or keep as investment but merely own for your personal use and enjoyment. How to Report Your Hurricane Loss on Your Tax ReturnĪny hurricane losses that occur within the taxable year are reported on IRS Form 4864, “Casualties and Thefts.” This form will guide you through the amount you can claim. If this is the case, it’s good to speak with a tax pro for assistance. In other words, you may have to pay taxes on the reportable gain. If you receive a reimbursement that is more than the adjusted basis of your property, you could have a tax gain. In some cases, you may need to report a casualty tax gain from reimbursement. That will leave you with a final loss figure for tax purposes. Once you’ve determined the smaller amount from the two loss calculations, you’ll need to subtract any insurance or reimbursement you’ve received or expect to receive. If your property would have sold at $25,000 before the casualty but $10,000 afterward, then the decline in fair market value is $15,000. The IRS considers your fair market value the price at which you could sell your property to a willing buyer in the open market.
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