re: Tax write offs for people who flooded?

As I understand it...

If anyone had severe flood damage and had little or no insurance, they should definitely explore taking a casualty loss deduction on their tax return. Documentation will be an issue. No documentation = No tax deduction. The tax loss is the decrease in value of the home and personal property, not the cost to replace or repair. Calculating the decrease in value will involve estimates and be tedious. You will become very familiar with IRS publication 547 concerning casualties losses. Print it out and start documenting your loss.

Bullet Points:

The loss in value occurred in 2016 and is deductible in 2016 regardless of when you paid your contractor or purchased the new TV.

Flood insurance proceeds and FEMA grants both decrease the total amount of your loss.

The loss is limited to the excess over 10% of your AGI.

You can use the cost to repair your home as a method of determining the decrease in value if there were no material upgrades made to your home.

Personal property needs to be accounted for on a item by item basis. The cost to replace the item is not the decrease in value unless the item was brand new. Example: The decrease in value of that 5 year old 60" flatscreen TV you put on the curb is not the cost to replace or it's original cost. The loss is the fair market value immediately preceding the flood and the value after the flood (zero). You paid $1000 for it 5 years ago, you replaced it last month for $750, and a similar used tv would sell on Craigslist for $250. Your loss is $250.

Sorry about your house. I feel your pain. This tax calculation is difficult, but can net you some money from the IRS. There is nothing illegal or unethical about it if you use photos and reasonable estimates. Document as much as possible.