How to prepare flood loss for tax return?

How to prepare flood loss for tax return?

Homeowner · Tampa, FL · Member since 2016 · 358 posts · 65 votes

Lots families were flooded from Hurricane Helene. The flood insurance will cover limited, structure may or may not the contents. Lots people's car, appliances were died. The loss is very big for those family. I drove through some community and like a after war field. 

How those people should be prepared to report loss on tax return? How detail to keep the loss?

Hope tax professionals or experienced people can give some suggestion.

Thanks!

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
1y

@Huiping S. To claim flood losses from Hurricane Helene, affected families should document all property damage, take photos, and keep receipts for repairs. File a casualty loss using Form 4684 and Schedule A if losses exceed $500 and aren't fully covered by insurance. Record the fair market value before and after the flood, and subtract any insurance or FEMA assistance.

*This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

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  • Accountant · San Diego, CA · Member since 2019 · 1k+ posts · 552 votes
    2y

    Hello @Huiping S., 

    To report losses from Hurricane Helene on tax returns, affected individuals should first confirm if the area is a federally declared disaster zone, as this allows for casualty loss deductions. They should keep detailed records, including photos of damaged property, repair estimates, and receipts for items like cars and appliances. It’s also important to document any insurance reimbursements received, as losses must be reduced by that amount.

  • Homeowner · Tampa, FL · Member since 2016 · 358 posts · 65 votes
    2y

    Thanks Zachary Jensen!

    People are so emotional and just throw things away. There are people no mortgage and no any insurance neither.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Huiping S.:

    Lots families were flooded from Hurricane Helene. The flood insurance will cover limited, structure may or may not the contents. Lots people's car, appliances were died. The loss is very big for those family. I drove through some community and like a after war field. 

    How those people should be prepared to report loss on tax return? How detail to keep the loss?

    Hope tax professionals or experienced people can give some suggestion.

    Thanks!


     CALL YOUR ACCOUNTANT 

  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 901 votes
    2y

    To prepare for reporting flood losses on tax returns, affected individuals should confirm if the area is a federally declared disaster zone, as seen during events like Hurricane Katrina. This allows for casualty loss deductions. Keep detailed records, including photos of damage, property estimates, and receipts. Any insurance reimbursements must be documented, as losses should be reduced accordingly.

    Malabute & Company CPAs525 Reviews
  • Homeowner · Tampa, FL · Member since 2016 · 358 posts · 65 votes
    1y

    Thanks to share valuable information!

    Emailed CPA and no response. Investors here are much more knowledgeable and helpful than the CPA we hired. 

  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1y

    @Huiping S. To claim flood losses from Hurricane Helene, affected families should document all property damage, take photos, and keep receipts for repairs. File a casualty loss using Form 4684 and Schedule A if losses exceed $500 and aren't fully covered by insurance. Record the fair market value before and after the flood, and subtract any insurance or FEMA assistance.

    *This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

    INVESTOR FRIENDLY CPA®5241 Reviews
    TaxMD® | AI-Powered Tax Planning
  • Homeowner · Tampa, FL · Member since 2016 · 358 posts · 65 votes
    1y

    Thank you so much @Ashish Acharya to share your valuable knowledge!

  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1y
    Quote from @Huiping S.:

    Thank you so much @Ashish Acharya to share your valuable knowledge!

    Happy to help! 

    INVESTOR FRIENDLY CPA®5241 Reviews
    TaxMD® | AI-Powered Tax Planning
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