Daniel's cabin was destroyed in a massive tornado in 2017.After consideration of insurance,he has a loss of $15,000.The President of the United States has declared the area a disaster area.Daniel can deduct this loss in
A)2016.
B)2017.
C)2018.
D)either 2016 or 2017.

Question

Quizplus · Accepted Answer

D)When a taxpayer incurs a casualty loss in an area declared a disaster area by the President of the United States,he can elect to deduct the loss in the year the loss occurs or in the preceding year's tax return.

Daniel's Cabin Was Destroyed in a Massive Tornado in 2017