Posted: March 5, 2013
Postponement of Deadline to Elect to Deduct Prior Year Losses
In response to the continued effects of Hurricane Sandy, the IRS has postponed the deadline to deduct losses attributable to the October 2012 disaster.
Under special disaster relief tax rules, losses due to Hurricane Sandy may either be deducted on a 2012 tax return or as an amendment to a 2011 tax return. Since most Sandy losses will be considered "casualty losses", the loss must exceed 10% of your Adjusted Gross Income in order to be deductible. Therefore, there may be a greater tax benefit by amending the 2011 tax return if income was lower in 2011 than in 2012.