Some of the allowable disasters specified by the IRS are fires, storms, tornadoes, floods, hurricanes, earthquakes, and mudslides. First, you need to determine the amount of loss that is deductible. The casualty loss is the lesser of the decrease in the fair market value of the damaged property, or the adjusted basis in the property prior to the disaster. Then reduce the determined casualty loss by any insurance or other reimbursements you receive or expect to receive in the future. You Ever Encounter a Disaster.
Disasters are unfortunate, but some of the damage they cause can be deducted.
More taxpayers are choosing direct deposit as the way to get their tax refunds. Nearly 30 million people had their tax refunds deposited directly into their bank accounts during the 2000 filing season - a 25 percent increase from the year before. Choosing direct deposit is the best way to guard against having a tax refund misplaced or stolen. Taxpayers who file electronically get their refunds in about half the time as those who file paper returns. A word of caution - some financial institutions do not allow a joint refund to be deposited into an individual account.