In 2024, a year marked by numerous natural disasters, the IRS has stepped up to provide taxpayers with crucial relief measures. More than 60 disaster relief notices have been issued, offering postponement of tax return filing and tax payment due dates for individuals and businesses across various U.S. counties. This relief is vital as individuals and businesses begin the challenging recovery process, which often involves navigating insurance claims and understanding loss deductions for the first time.
The federal tax law provides rules for those claiming losses as a result of damages to business, investment and personal use property. Federal tax rules also benefit those who might realize a casualty gain when insurance proceeds exceed the cost or basis of damaged property.
In this episode, Tax Services Partner Brooks Nelson, Tax Director Sarah McGregor, and Tax Services Partner Mark Giallonardo join together to discuss IRS disaster filing relief, tax gains and losses resulting from property damage in federally declared disasters, and the impact of the TCJA on these claims.
Listen to learn more about:
- 03:47 – How the TCJA Affects Casualty Loss Deductions
- 05:32 – Methods for Assessing Fair Market Value
- 07:20 – Individual Loss Claims: TCJA Limitations Explained
- 08:40 – Business Loss Claims: Navigating TCJA Restrictions
- 09:55 – Understanding Timing Rules for Casualty Losses
- 12:45 – Strategies to Prevent Tax Gains When Claiming Losses
- 14:12 – Navigating the IRS Disaster Relief Funding Process
Related Insights
- Article: Navigating Hurricanes and Tax Relief: Guidance from the IRS and State Tax Authorities
- Article: The Trump-Era Tax Cuts Expiring in 2025
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