After Irene, IRS Highlights Tax Help for Disaster Losses

Connecticut residents who suffered property damage from Hurricane Irene may be able to take advantage of several federal tax provisions designed to mitigate disaster losses. Federal law generally allows taxpayers to deduct losses on homes, businesses, personal property, and vehicles stemming from sudden, unexpected or unusual events, such as hurricanes, floods, tornados, and volcanic eruptions. Losses are deductible for the tax year in which they occur.

Losses covered by insurance are not deductible and taxpayers must show that they made a timely request for insurance reimbursement. For more information, consult IRS Publication 547, Casualties, Disasters, and Thefts.