The average household loss resulting from a natural disaster is more than $6,000. The average burglary loss is about $2,000.
Both impact tax returns.
House fires, storm damage, thefts and vandalism all result in losses that may qualify for a tax deduction. Generally, property losses not covered by insurance are tax-deductible as an itemized deduction on Schedule A. A tax professional can help determine if it’s better to claim a casualty loss on the current year’s tax return or on an original or amended tax return for the previous year. Also, taxpayers who have losses in a federal disaster area generally will have extended tax deadlines.
For more information about the tax implications of casualty loss and theft, contact the H&R Block Media Desk at 816-854-4287 to talk to a tax professional.