Hurricane Harvey and Irma & IRS Casualty Loss Deductions

Affected taxpayers in the Hurricanes Harvey and Irma covered disaster areas can claim disaster-related casualty losses on their income tax return.

Hurricane Harvey Covered Disaster Areas

Texas: Aransas, Austin, Bastrop, Bee, Bexar, Brazoria, Burleson, Caldwell, Calhoun, Chambers, Colorado, Comal, Dallas, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim Wells, Karnes, Kleberg, Lavaca, Lee, Liberty, Madison, Matagorda, Milam, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Augustine, San Jacinto, San Patricio, Tarrant, Travis, Tyler, Victoria, Walker, Waller, Washington and Wharton.

Louisiana: Acadia, Allen, Assumption, Beauregard, Calcasieu, Cameron, De Soto, Iberia, Jefferson Davis, Lafayette, Lafourche, Natchitoches, Plaquemines, Rapides, Red River, Sabine, St. Charles, St. Mary, Vermilion and Vernon.

Hurricane Irma Covered Disaster Areas

Florida: All 67 counties in Florida.

Georgia: All 159 counties in Georgia.

South Carolina: Abbeville, Allandale, Anderson, Bamberg, Barnwell, Beaufort, Berkeley, Charleston, Colleton, Dorchester, Edgefield, Georgetown, Hampton, Jasper, McCormick, Newberry, Oconee, Pickens and Saluda.

Puerto Rico: The municipalities of Adjuntas, Aguas Buenas, Barranquitas, Bayamón, Camuy, Carolina, Cataño, Ciales, Comerío, Culebra, Canóvanas, Dorado, Fajardo, Guaynabo, Gurabo, Hatillo, Jayuya, Juncos, Las Piedras, Loíza, Luquillo, Naguabo, Orocovis, Patillas, Quebradillas, Salinas, San Juan, Toa Baja, Utuado, Vega Baja, Vieques and Yauco.

U.S. Virgin Islands: The islands of St. Croix, St. John and St. Thomas.

Claiming IRS Casualty Loss

If you have suffered an economic loss due to these natural disasters, you can claim a casualty loss on your federal income tax return. To do this, you must itemize your deductions using Schedule A, Itemized Deductions, and report the loss on line 20 of that form.

To figure the amount of the loss, you must use Form 4684, Casualties and Thefts. In Part A of that form, you should list any damage or loss to personal-use property. In Part B of that form, you should report any damage or loss to business or income-producing property.

If your property is for personal use or has not been completely destroyed, the amount of your loss will be the lesser of your adjusted basis or the decrease in the fair market value of your property due to the damage. In this case, your basis will be the amount you paid for the item plus any long-term improvements.

If your property is business-use property and it has been completely destroyed, then the amount of your loss will be your adjusted basis. In this case, your basis will be the amount you paid for the item plus any long-term improvements less any depreciation you previously claimed on your business property.

According to the IRS, individuals and businesses have until Jan. 31, 2018 to file any returns and pay any taxes due.

For any additional information about the IRS Casualty Loss Deductions, see the special pages for Hurricane Harvey and Hurricane Irma.

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