by Laura Adams
Q. I had to file insurance claims to repair damage caused to my home by Storm Sandy. Can I deduct these on my tax return?
A. There are disaster-related tax breaks that Sandy victims may be eligible for, depending on where you live. If you replace or repair your property within 2 years (or 4 years in a federally declared disaster area) after receiving an insurance payout, the money isn’t taxable. So depending on how you spend the insurance funds, it may or may not be included in your income.
Keep good records of payments you receive and consult with a tax accountant so you get all of the tax deductions and benefits that you’re entitled to. You can claim casualty losses on Form 4684, Casualties and Thefts—if you itemize deductions on your federal tax return.
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