We have been hard at work since the passage of the Tax Cuts and Jobs Act on December 22, 2017. Since we are a boutique CPA firm focused on understanding the intricacies of the ever changing tax environment, we have spent considerable time understanding the new law and its impact on our clients.
Embedded in this Bill was a new provision that changed the rules related to casualty losses from federally declared disaster areas, this includes the areas affected by the named hurricanes in 2016 & 2017. The new law allows losses over $500, even if you did not itemize your deductions, for tax years 2016 & 2017. The old law limited the loss to only amounts over 10% of your adjusted gross. Since most taxpayers filed their 2016 tax return before the passage of this retroactive provision, you can amend your 2016 tax return to reflect these losses and the claim a refund.
The passage of this major tax bill emphasizes the criticality of using highly skilled, credentialed tax CPAs to help navigate this new law and its impact on your specific situation. If we can assist you with your tax situation or gaining a better understanding of the new law, please do not hesitate to contact us.