There are tax benefits for real estate casualty losses. An itemized deduction is required, so qualification is based on your tax situation. Deductions lower the amount of income that is taxed and the amount of tax due. This article offers tips on MA real estate casualty loss tax deductions.
Understanding Casualty Losses
The Internal Revenue Service defines a casualty loss as the "damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual."It could take place as a result of natural disasters such as floods. Man-made occurrences like vandalism may also qualify. To review the full details of this law, visit at: http://www.irs.gov/publications/p547/index.html.
When to Deduct
When you can take the deduction depends on one very important factor. If the damage occurred during a President-declared disaster, then you may resubmit your tax return from previous years to deduct the damage. This can result in a tax refund. If not, property owners must delay until the next tax filing.
Determining the Amount
First and foremost, the deduction is only applied costs not covered by insurance or other resources. The sum relates to the decline in market value of real estate caused by the damage, the income of the tax payer, and a few other factors. Federal and state calculations can vary.
More Tips On MA Real Estate Casualty Loss Tax Deductions
Reach out to accountant regarding deduction qualifications, how much you may take, and variations in federal and state returns. There might also be additional home ownership deductions that you may use. This blog offers tips on MA real estate casualty loss tax deductions and is intended to inform you of possible deductions. It does not in any way guarantee that you will be able to incorporate deductions on your personal tax return.