Tax Relief for Hurricane, Wildfire, Flood and Other Natural Disaster Victims
When a natural disaster hits, staying safe and finding food, water, shelter and other necessities are the top priorities for people directly affected by Mother Nature's outburst. Eventually, however, natural disaster victims will also have to worry about insurance claims, lost wages and other financial issues.
Fortunately, when it comes to taxes, there's some relief available for those left with property damage and lost records in the wake of a hurricane, wildfire, tornado, earthquake, flood or similar natural catastrophe.
Deduction for Damaged or Lost Property
An important tax break for natural disaster victims is the casualty loss deduction for damage to your home, car or personal belongings. Generally, the deduction is equal to either the property's adjusted basis or decreased value, whichever amount is smaller, less insurance proceeds.
