Welcome Guest. Register Now!  


Itemized Deductions Schedule-A


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-29-2009, 03:40 PM
Junior Member
 
Join Date: Jan 2009
Posts: 1
Hurrican Ike Loss

I experienced an uninsured loss from Hurricane Ike of approx. $45K. This is what it cost to replace. Can I take this as a deduction on my 2008 return?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-01-2009, 03:53 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
The IRS considers this loss as a "Casualty Loss." Generally speaking, these so called casualty losses are deductible to the extent that they are in excess of 10% of the taxpayers Adjusted Gross Income (AGI). This means that only the losses that exceed 10% of a taxpayers AGI deductible, and a $100 amount for each incidence.

But, the IRS has made an exception for victims of various disasters such as Hurricane Ike. Thus victims of Hurricane Ike will not have their losses limited by 10% of Adjusted Gross Income. In fact, the casualty losses sustained by your would be deductible from the first dollar, after deducting a $100 per-incident amount.

For example, you incurred a $45,000 loss and lets assume your AGI was $100,000, you would normally be able to deduct only $34,900 ($45,000 less $10,000 (10% of $100,000 AGI) less $100).

Under the rules for Hurricane Ike, you would be able to deduct $44,900($45,000 less $100). This is a difference of $10,000 in deductible expenses, which will save you $2,500 in taxes if you are in the 25% marginal tax bracket!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax loss harvesting bruces Capital Gains 1 11-26-2008 10:36 AM
Capital Loss in Trading rweworld Capital Gains 3 03-27-2008 10:06 AM
What happens when you sustain a capital loss of more than $3,000? TaxGuru Capital Gains 2 02-07-2008 06:08 PM
loss from former partnership business eastvillage Itemized Deductions 1 01-04-2008 02:56 AM
Can u write off a loss on sale of home? mongrel Capital Gains 1 01-27-2007 12:01 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning