How do you calculate causality loss from Katrina on your income taxes?

Answer by  Att4372 (1704)

Loss is the total value of the property before the event less 1) salvage value 2) insurance reimbursement and 3) government payments. To find casualty loss (for Schedule A tax deduction), you also must subtract 10 percent of you Adjusted Gross Income (AGI) and $100. For Katrina, these additional deductions were eliminated.

Answer by  Kristine (145)

Hurricane Katrina losses must be claimed on your Schedule A for itemized deductions. You also cannot claim a loss that you expect to receive reimbursement for. See Publication 547