April 2008 flood loss?

Yes you will be able to take a casualty loss on your income tax this year. There are numerous tax benefits available to taxpayers in your situation.

You could use your loss for the previous year instead of 2008 if that is beneficial to you.

You are not subject to the limitations normally imposed on casualty loss and will be able to take your full loss even if you do not itemize.

You can also stretch out the tax and waive penalties on distributions from your IRA or 401k if those distributions are related to the casualty.

Added later: On your tax return, indicate you had a financial loss from the disaster and on your Form 5329. This will waive the 10% penalty on your distribution. You can opt to have the distribution treated as if it is spread out over three years, and you pay income tax on 1/3 of the distribution each year.

Seek a tax professional in your area who is up to date on the EESA provisions of 2008.

If this was declared a national disaster area you are most certainly entitled to some federal assistance from Fema and/or other organizations that helped others in the area. Check with the Red Cross, and Habitat for Humanity. As everyone hears on T.V. these organizations are the ones who step in to help. Also if you did not have flood insurance (which is not included on a home owners policy)unless you have specifically taken out flood insurance, you're not covered. Flood insurance is very expensive.

Was this a Presidentially declared disaster area? What state where you in?

This is important.

Regular floods go on form 4684, reduced by $100, reduced by 10% of your agi and THEN to schedule A if you can itemize.

The Midwest disaster area (about 10 states) goes on 4684, is not reduced and goes to schedule A.

All other PDDAs go on 4684, subtract $500, but NOT 10% of agi and get ADDED to the standard deduction even if you can't itemize.

i don't be conscious of if the distinctive coverage companies soak up "forcasted possiblities" alongside with worldwide warming, el nino/nina climate, kind of projected hurricanes according to season, and so on... into their cost projections. yet i be conscious of that they look on the section they're insuring in (domicile, company, wellbeing etc) and check out what might desire to it possibly cost them. that's of project. in basic terms like enjoying cards. Many companies that insured movable and non-movable products in the gulf coast 3 years in the past lost. So now, in the event that they proceed to insure in that section, they're hedging their bets. Many present day rates greater 25-70% reckoning on the provider and merchandise or products lined and the place. New regulations for the comparable are have greater upwards of 500%. that's so as that they might conceal their losses, and hedge their bets for the subsequent time this occurs. So i could say somewhat than "estimated long term climate possibilites" they look on the worst case concern of their container, who their insuring and the place, then cost gouge consequently.

It depends on your income. The higher the income the more likely the disaster loss will phase out.