In 2017,the U.S.President declared a federal disaster due to the flooding in Louisiana.Danielle lives in that area and lost her home in the flood.What choice does she have regarding when she can claim the loss on her tax return?
A)It must be claimed in 2016 if the return has not been filed by the date of the loss.
B)It must be claimed in 2017 if the loss is greater than the modified adjusted gross income.
C)It may be claimed in 2018 if an election is filed with the 2017 return.
D)It may be claimed in 2016 or 2017.

Question

Quizplus · Accepted Answer

Danielle has the option to claim the loss in the year the disaster occurred (2017) or in the year prior to the disaster (2016). This special provision allows taxpayers to potentially get a refund sooner to help with recovery efforts.