How to Deduct Property Losses After a Hurricane

Joy Taylor
Kiplinger’s Personal Finance

Ask a question: Last year, Hurricane Ian caused significant damage to my home. How can I claim the tax loss from my return?

Answer: Individual personal casualty loss is deductible to the extent that it’s attributable federal disasters such as earthquakes and blizzards. Hurricane Ian qualifies.

The deductibility rules have important restrictions. You can only claim a tax writeoff for personal property damage if you file Schedule A. There are two types of offsets. The first is to reduce the loss amount by $100. Next, reduce the loss by $100. Then subtract the balance if the total exceeds 10% of your adjusted Gross Income (AGI).

Let’s say that you have $25,000 of uninsured loss due to damage done by Ian to your home. Your AGI is $150,000. First, subtract $100 from your $25,000. Next, you’d subtract $100 from $25,000. This is Schedule A’s remaining amount that you are allowed to deduct. To calculate and report your IRS Form 4684, use the IRS Form 2684.