J.K. Lasser's 1001 Deductions and Tax Breaks 2018

CHAPTER 13 Insurance and Catastrophes

• Casualty and Theft Losses
• Disaster Losses
• Disaster Relief Payments
• Damages
• Disability Coverage
• Accelerated Death Benefits
• Legal Fees
• Appraisal Fees
• Corrosive Drywall Damage
• Identity Theft
• Identity Theft and Tax Relief
• Hurricanes Harvey and Irma Relief

 

Alert

At the time this book was completed, Congress was considering important tax changes that could affect 2017 tax returns and planning for 2018. Check the online Supplement in February 2018 at www.jklasser.com or www.barbaraweltman.com to see what changes have been enacted and when they are effective.

No one likes to think about bad things happening, but happen they do, as seen in severe winter storms in Oklahoma and Oregon, spring floods in Arkansas and Missouri, flooding, landslides, and mudslides in West Virginia, and of course, Hurricanes Harvey and Irma. Natural disasters, accidents, illnesses, and now terrorist activities, such as the Pulse nightclub incident in Orlando, Florida, and war all present serious personal and financial threats that can become reality. When faced with such catastrophes, insurance may carry you just so far, with economic losses outstripping your insurance recoveries. But you may be able to mitigate your financial losses with certain tax write-offs.

This chapter explains the tax rules related to insurance and catastrophes. Mortgage insurance is covered in Chapter 4. Losses to your bank deposits are discussed in Chapter 8. For more information, ...