Kiplinger

Deducting Disaster Losses on Your Tax Return

[QUESTION]My house was damaged by Hurricane Florence, and I have a 2% deductible on my homeowners insurance, which is about $7,000. Will I be able to deduct the $7,000 on my tax return?

[ANSWER]Maybe, but the calculation is complicated and the laws changed this year. In the past, everyone could deduct unreimbursed casualty losses -- whether their home was damaged by a major for a list of eligible counties).

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger5 min read
Leverage These 5 Retirement Tax Diversification Strategies
When you're depending on your savings to do the heavy lifting in retirement, you need to wring out as much income as you can from every dollar of savings. However, if most of your savings are in tax-deferred accounts, you'll end up sharing your windf
Kiplinger4 min read
A Tale of Two Investors: 1 Panicked and 1 Didn't
"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness ..." The famous opening line of Charles Dickens' classic Tale of Two Cities has remained culturally relevant for the past 160 years in many
Kiplinger12 min read
The 11 Best Closed-End Funds (CEFs) for 2020
Investors should be seeking out diversification and income-producing assets as they enter a potentially wild 2020 - especially after 2019's monster run. Closed-end funds (CEFs) provide both, reducing the risk of slower or even negative returns if thi