Plain Language of Change:
- For tax years 2018 through 2025 the personal casualty loss deduction is only allowed for losses attributable to federally declared disasters
- If a taxpayer has a net disaster loss arising from a federally declared disaster for tax years 2016 or 2017, the applicable limit is increased to $500 and the 10% AGI limit is waived
- We believe this will allow taxpayers to amend 2016 tax returns to reflect this change in law. We anticipate additional guidance from the IRS.
Cordasco & Company PC is a boutique CPA firm specializing in federal and state tax issues. We provide customized tax and accounting services specifically designed to help our clients capitalize on the rapidly changing tax and accounting environments.