The hurricane season is upon us and many taxpayers around the country have already experienced devastating property losses from tornadoes, floods, wildfires, and other natural disasters this year. The toll from these events is substantial, both personally and financially. However, there is a little bright spot for victims of these disasters: some of the economic loss can be recouped through tax write-offs.
If your property is damaged or destroyed in a casualty event, such as a fire, storm or flood, hopefully your insurance will cover all
Items directly reducing income. Personal deductions such as for mortgage interest, state and local taxes, and charitable contributions are allowed only if deductions are itemized on Schedule A, but deductions such as for alimony, capital losses, moving expenses to a new job location, business losses, student loan interest, and IRA and Keogh deductions are deducted from gross income even if itemized deductions are not claimed.