Disaster Area Loss

Disaster Area Loss

If a casualty is sustained in an area designated as a disaster area by the President of the United States, the casualty is designated a disaster area loss. A disaster area loss may be treated as having occurred in the tax year immediately preceding the year in which the disaster actually occurred. Thus, immediate tax benefits are provided to victims of the disaster.
References in periodicals archive ?
IRC section 165(i)(l) further permits individuals who suffer a federally declared disaster area loss to elect to take the loss in the taxable year immediately preceding the taxable year in which the disaster occurred.
By taking the deduction for a 2015 disaster area loss on the prior year (2014) return, you may be able to get a refund from the IRS before you even file your tax return for 2015, the loss year.
547, Casualties, Disasters, and Thefts, under "Disaster Area Losses" p.
However, the three-year carryback period was not changed for NOLs attributed to individual casualty or theft losses or presidentially declared disaster area losses of small businesses or farming operations.
Full browser ?