Tuesday, March 25, 2014

Tax Tip #5: Disaster Damage to your Home

#5 - Home Damage Caused by a Disaster

If your home experienced damage from a disaster, such as a tornado, hurricane or fire, you may be able to deduct the amount that was not reimbursed by your home insurance. To find out how much you are able to deduct, first figure out what your Adjusted Gross Income is. This refers to the amount that you will actually be taxed on after you subtract all of your expenses and deductions. These are also known as your "above the line" deductions.

Once you know what your AGI is, multiply it by 10%. Add $100. Then subtract that from the amount of damage not reimbursed. This gives you your damage deductible. If you need help, seek the advice of a tax professional.

For any mortgage-related questions, feel free to call Mortgage Jive at 877-828-8851. Click here to view Tax Tip #4.

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