Question:   Are the costs of a natural disaster deductible?

Answer:   Damage, destruction or loss of property from fires, floods, earthquakes and other disasters are deductible from both state and federal income taxes. In such a case, the IRS only allows a deduction less than or equal to the fair-market value of the property before the disaster.

Losses on the sale of your own home are not deductible, through they are deductible for rental properties

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