There are tax benefits for home casualty losses. An itemized deduction is required, so whether it may be applied depends on your tax situation. Deductions drop taxable income and subsequently the taxes due. This blog offers tips on Massachusetts real estate casualty loss tax write-offs.
What Is a Casualty Loss
The federal government considers a casualty loss as the "damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual."It can take place with weather conditions such as tornados. Non-weather-related activities such as fire can also qualify. There are other classifications offered in IRS Publication 547, which may be seen online at: http://www.irs.gov/publications/p547/index.html.
Information About Taking the Deduction
When to Take It
When you can take the deduction is determined by a very important event. If the damage took place during a President-declared disaster, then you may resubmit your tax return from previous years to deduct the damage. This will likely lead to a tax refund. If not, home owners must hold off until the next tax cycle.
It is important to know that the deduction is only applicable to items not covered by insurance and other types if aid. Several things such as amount of damage, income levels, and tax brackets affect the calculation of the deduction. Laws may differ at the federal and state level.
About Tips On Massachusetts Real Estate Casualty Loss Tax Write-offs
Reach out to a tax advisor regarding tax deductions, calculations, and variations in federal and state amounts. There might be additional home ownership deductions that you can qualify for. The above contains tips on Massachusetts real estate casualty loss tax write-offs and is intended to make you aware of possible deductions. It should not be construed as accounting advice.