On January 31st, 2024, the U.S. House passed The Tax Relief for American Families and Workers Act, a bipartisan package which includes Rep. Steube's bill to designate Hurricane Ian as a qualified disaster for tax purposes.
The legislation designates that Hurricane Ian and other hurricanes including Hurricane Idalia, Hurricane Nicole, and Hurricane Fiona, should be treated as qualified disaster events for purposes of determining the tax treatment of certain disaster-related personal casualty losses. The legislation would allow Americans who were subjected to damages from hurricanes to claim such losses without itemizing such deductions. Moreover, such losses would not have to exceed 10% of a claimant’s adjusted gross income to qualify.
We are monitoring the progress of the bill and, once the package is signed into law and the IRS has released its guidance, we will contact all our clients with an update on how to claim.
In the meantime, our Hurricane losses checklist will help you prepare for the submission of your claims.