Tax tips: Bay Area homeowners can claim Hurricane Helene and Milton losses without 10% rule
Storm damage, high property tax bill deductions
Bay Area homeowners dealing with lingering storm damage or high property tax bills have some federal relief available. FOX 13's Craig Patrick reports.
TAMPA, Fla. - Bay Area homeowners dealing with lingering storm damage or high property tax bills have some federal relief available.
The backstory:
If your home or property was damaged by Hurricanes Helene or Milton, you can claim disaster-related losses without itemizing your deductions.
Crucially, the government waived the old rule that your loss had to exceed 10% of your adjusted gross income.
What you can do:
If insurance didn't cover your roof or flooded car, calculate the drop in fair market value and deduct it. You can claim this on your 2025 return, or amend your 2024 return.
If you have a large property tax bill, you can combine it with your estimated state sales tax to take advantage of the newly raised $40,000 SALT cap. You don't need receipts to do this; use the IRS 'Sales Tax Deduction Calculator' to legally estimate your sales tax based on your income, then add that to your property tax. If the combined number beats the standard deduction, you can save money by itemizing this year.
The Source: Disaster relief information is sourced from federal emergency tax relief legislation specifically passed for Hurricanes Helene and Milton. SALT cap guidelines and calculator tools are provided by the IRS.