A taxpayer is entitled to a deduction for a casualty loss which occurred in a federal disaster area in
mid- summer 2018. The taxpayer would prefer to take the casualty loss deduction in 2017 because of the higher tax rates. Since the taxpayer has already filed his 2017 tax return, he will not be able to take advantage of the option.

Question

Quizplus · Accepted Answer

A taxpayer can amend a prior year's tax return to claim a casualty loss deduction for a disaster occurring in the following year if the loss is in a federally declared disaster area.

A Taxpayer Is Entitled to a Deduction for a Casualty