Hurricane and Taxes

With Hurricane Irene apparently heading for somewhere on the east coast, I thought that it might be time for your CPA to chime on any potential tax implications of such a storm. Unfortunately, you can not deduct any travel or expenses recorded in preparation. Some example of non-deductible, yet common preparation items, would be plywood for windows, the purchase of a generator, etc. A casualty theft or loss (which a hurricane event would qualify for), has the potential to be deductible on your tax return. As always, there are plenty of minute details and stipulations. Some of them are as follows (in as plain English terms as I can do):

1) Any portion of the loss covered by insurance is not deductible.

2) The loss is limited to the amount of decrease in the value of the property.

3) The amount of the loss is be reduced by $100.

Hopefully, we won't have to worry about the issue as a casualty theft or loss write-off does not offset the trouble of having to deal with such a loss. If you are interested in the full details, you can find them on this page.