While battling flood damage, it can be extremely difficult to get a tax break for it. Here’s what every homeowner should know.
- The Tax Cuts and Jobs Act limits the extent at which individuals can claim a deduction for property damages
- This act causes people to only be able to claim losses if the damage is due to a federally declared disaster
- This change found in the act will be in effect until 2025
- Your total losses must be over 10% of your adjusted gross income
- New tax laws raised the standard deduction by almost double what it was
Homeowners should make sure to review their insurance coverage and decide whether they’re prepared for disasters. Understanding your policy is extremely important. If you feel as though you are not prepared for a disaster, make sure you have a plan in place for any home emergency that may arise.