Are the costs of a natural disaster deductible?

Damage, destruction or loss of property from fires, floods, earthquakes and other disasters are deductible from both state and federal income taxes. In such a case, the IRS only allows a deduction less than or equal to the fair-market value of the property before the disaster.

Losses on the sale of your own home are not deductible, through they are deductible for rental properties.

Are taxes on second homes deductible?

Can I deduct the loss I suffered when I sold my home?

 

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