• marsee0

Kilauea's eruption and my casualty and loss...

Updated: Jul 23

The itemized deduction for casualty and theft losses has been suspended except for losses incurred in a federally declared disaster. For our clients on the Big Island, Kilauea's eruption and lava flow disaster was declared by President Trump on May 11, 2018 as a federal disaster. This allows those effected by the Big Island volcano eruption and lava flow to potentially claim a disaster loss on their 2018 tax return. However, much is still unknown about the situation including potential insurance proceeds, FEMA reimbursements, and potential land swaps discussed by Governor Ige. Each situation will be evaluated when information becomes clearer or when the 2018 tax return is prepared to determine if a casualty loss is appropriate for 2018. However, if you are affected by this disaster begin collecting documentation and information now regarding the original purchase of the property, improvements to the property, and the value of the property just before the disaster. This information is required in order to claim a casualty loss.




© Carbonaro CPAs & Management Group. Web design & images where noted, © The Vine Studios. All rights reserved. Privacy Policy.