Tax write offs for people who flooded?

I've saved receipts for everything I've purchased to replace what we lost, so I'm assuming that'll be sufficient documentation for the write offs?

THats a good question... we purchased most all of our contents in 2016, but we didn't pay our contractor in 3 separate draws.... 90% of the work was done in 2016 but the final payment will be made in 2017

Edit: just saw taxingtiger comments. I'm guessing he/she may be tax professional given the name.

I hope a tax professional will chime in on this.

I didn't flood but was at a lunch and this question was asked. A CPA said there are no deductions you can take for personal property losses due to flood. If you had a business that operated from the home there were some things you could do, but if only your home there was nothing you could deduct.

I may have misheard the conversation, but I don't think so.

I read on the IRS website that it's no longer $100 and 10% of your agi. The new rule is a flat $500 dollats.

So.. I'd check with a cpa.

I'll look for a link and update this post if I find it.

This is terrible advice. Hopefully you misheard him. Home, contents, landscaping, etc. All would be eligible.

Regarding the 10% of AGI, we (our firm) contacted Bill Cassidy multiple times trying to get that waived, but they avoided the question. That threshold was waived for Katrina. It's chicken $hit that they won't waive that threshold for this disaster.

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.