Can I deduct flood damage loss on my tax return?
(Revised November 2012)

Generally, flood damage is deductible as a casualty loss, and as such it is subject to a number of limitations.

  1. You must itemize rather than take the standard deduction.
  2. The total loss must be reduced by 10% of your income for the year.
  3. The loss has to be based upon the cost of cleanup and decrease in the value of the property due to the casualty. For example, if you are claiming a loss of furniture and other personal effects caught in a basement flood, you are probably talking about thrift shop values.
  4. The loss has to be reduced by any insurance proceeds you receive. 

If you are still able to claim a casualty loss on your tax return, you should obtain proof of the amount of the loss - often you will need a written appraisal. If the flood damage occurs in a 'Federally designated disaster area' the rules are generally much more liberal.

If you were affected by the recent east coash hurriccane, you need to contact your tax advisor for the details.  You can contact us by using the link on the left side of this page.

FAQ Menu

To contact us or return to a different page, use the links on the left hand side of this page.