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February 18, 2020
Question

I am a renter who was financially effected by a tornado in October 2019. Will this give me any kind of extra earnings on my return or not?

  • February 18, 2020
  • 2 replies
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2 replies

Carl11_2
Employee
February 18, 2020

I am a renter

Who pays rent? If so, how are you expecting a tornado to give you "extra earnings"? In order to have any earnings (much less extra earnings) you have to go out and actually "do something" to earn it. You really need to clarify things here.

 

DavidS127
February 18, 2020

It depends.  If the tornado resulted in a "federally declared disaster" there is a deduction for loss of property, but only if you itemize deductions on your tax return.  Otherwise, "casualty losses not resulting from a "federally declared disaster" are no longer deductible, starting in 2018.  If your business was impacted during a federally declared disaster, there are provisions, in certain specific situations, to deduct loss of income.

 

See IRS Topic 515 for more details on deducting a casualty loss.

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