The IRS announced they are extending the deadline for victims of Hurricane Sandy to claim their loss on a 2011 return through October 15, 2013. This is extremely helpful for taxpayers whose homes and records were completely destroyed. The additional six months allows taxpayers the time to ensure they are claiming the casualty loss in the year that will benefit them the most.
Taxpayers who suffer a loss due to a disaster, such as Sandy, are offered the option to claim their loss on the tax return for the year prior to the year of the loss or the year of loss. This allows them the option to claim the largest allowable loss. For many taxpayers in the Sandy disaster area, claiming the loss on their 2011 tax return may allow them to claim a larger refund.
Reach out to your nearest Tax Pro for questions regarding disaster losses.