Thursday, February 14, 2013

Claiming Hurricane Sandy personal property loss deductions

When filing your federal income tax return, you may deduct personal property losses that aren't covered by insurance or other reimbursements. Claim the losses as an itemized deduction using federal Form 4684, Casualty and Theft...

Claiming the loss on an amended return for the prior year may result in an earlier refund, but waiting to claim the loss on the return for the year the loss occurred could result in greater tax savings, depending on other income factors.

New York State follows the federal rules for casualty losses. As a resident taxpayer, you may claim the loss on your New York personal income tax return as an itemized deduction. You must use the same year you chose to claim the loss on your federal return.

More here.

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