How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask CGCPA Your Own Question

CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3742
Experience:  over 40 years experience in tax matters
50756543
Type Your Tax Question Here...
CGCPA is online now
A new question is answered every 9 seconds

my property suffered considerable loss due to landslide stemming

Customer Question

my property suffered considerable loss due to landslide stemming from the huge March 30,2010 storm that caused major flood damage from RI through CT. FEMA declared the area a Federal Disaster area.

Repairs to our property cost $25,000 one half of which was funded by the Town's insurance carrier due to their negligence in providing proper storm water management from the town road abutting the property.

Do I qualify for a deduction without the usual restrictions (5 of gross income)? I see this quote from an internet site "But according to the National Disaster Relief Act, property losses in federally declared disaster areas are not subject to the 10% of adjusted gross income limit."

Thank you
Submitted: 3 years ago.
Category: Tax
Expert:  CGCPA replied 3 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

Yes you are exempted from the 10% of AGI limits. Here is the full text of the item to which you refer (from the IRS). Please pay careful note that you must still reduce your loss by $500.










FAQs for Disaster Victims - Calculating a Casualty Loss Under the National
Disaster Relief Act of 2008






(03/09) Q: How do I determine my deduction for a casualty loss that
resulted from a federally declared disaster.

A: How you determine a disaster-related casualty losses has
changed as a result of the National Disaster Relief Act of 2008, which is
effective for disasters occurring after December 31, 2007, and before January 1,
2010.


Under prior law, individuals who suffered casualty losses as a result of a
Presidentially declared disaster were required to reduce the loss from each
casualty event by $100 and reduce the total of their casualty losses for the tax
year by 10 percent of their adjusted gross income. In addition, these
individuals were required to claim their casualty losses as an itemized
deduction.


The new law changes the amount by which individual taxpayers must reduce
their personal casualty losses from each casualty event from $100 to $500. This
change is effective for taxable years beginning after December 31, 2008. The
reduction amount returns to $100 for taxable years beginning after December 31,
2009.


The new law also removes the 10 percent of adjusted gross income limitation
for net disaster losses and allows individuals to claim the net disaster losses
even if they do not itemize their deductions.


To qualify, a loss must be attributable to a federally declared disaster and
occur in an area determined by the President to warrant assistance by the
federal government under the Stafford Act. The deduction is limited to the "net
disaster loss" which consists of the excess of personal casualty losses
attributable to a federally declared disaster over personal casualty gains.


Information on disaster areas may be found at the Federal
Emergency Management Agency (FEMA) website
.


These changes to the law do not apply to the casualty losses in the
Midwestern disaster areas declared during the period beginning on May 20, 2008,
and ending on July 31, 2008. See Publication 4492-B,
Information for Affected Taxpayers in the Midwestern Disaster Areas
.


References/Related Topics


Per the IRS web site, this information was updated October 26, 2011. Therefore it is current.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
 
 
 
Chat Now With A Tax Professional
CGCPA
CGCPA
Owner
2585 Satisfied Customers
over 40 years experience in tax matters