Tough To Claim Ice Storm Damage

Tax day is fast approaching.  You might be thinking you can cash in on last year's ice storm damage, but it's not as easy as you might think.  The News On 6's Steve Berg reports a tax accountant says there's really not much that can be deducted from the ice storm damage.

Ceil Bowers says some of her clients have gone to a lot of trouble, all for naught.

"They have brought to us detailed, itemized lists of having the tree trimmed or cut down or the stump removed or the debris hauled off," said Ceil Bowers.  "Those things are not a measure of a casualty loss nor are they deductible."

The only thing deductible about your tree is its value to your property value, and that takes an expert appraisal.

To determine the casualty loss of your property, you take the fair market value of your home before the ice storm, minus the fair market value after the ice storm.  But, the loss has to be more than 10% of your income plus $100, before you can claim a tax deduction.

"So if you had a $5,000 loss and your adjusted gross income was $65,000, you would have zero deductible casualty loss," said Ceil Bowers.

Bowers says very few people will have trees that are deemed more valuable to their property than 10% of their income.

The only other ice storm trick she knows of is no longer available.  She says some people were quick to donate steaks and other expensive food to charity during the ice storm.

"Called John 3:16 and Salvation Army to come get that meat and serve it, because they knew they were going to lose it, and they picked up 100% of that value as a contribution," said Ceil Bowers.

Ice damage to your house is deductible if it wasn't insured.  Then again, if your home's not insured, you've got bigger problems.

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