In regards to the casualty losses resulting from Hurricane Sandy:
Typically, the federal government will waive the “10 percent rule” for a Federally declared disaster which is what “Sandy” has been classified as. This has not been the case with Hurricane “Sandy”. As it stands today, if you have losses as a result of Hurricane “Sandy” you must deduct 10% of your income, as well as $100, from your disaster loss to determine how much of it can be deducted.
An amendment to waive the 10% was introduced into Congress as part of the “Sandy Aid Bill”, but died in committee and never reached the House of Representatives in December 2012. The new Congress has not considered the waiver as of 03/08/13. Call VB&T if Hurricane Sandy is wrecking your Tax Return (212) 448-0010
VB&T Certified Public Accountants, PLLC