In 2016,the U.S.President declared a federal disaster due to the flooding in North Carolina.Dan lives in that area and lost his home in the flood.What choice does he have regarding when he can claim the loss on his tax return?
A)It must be claimed in 2015 if the return has not been filed by the date of the loss.
B)It may be claimed in 2017 if an election is filed with the 2016 return.
C)It must be claimed in 2016 if the loss is greater than the modified adjusted gross income.
D)It may be claimed in 2015 or 2016.

Question

Quizplus · Accepted Answer

If a federal disaster is declared, taxpayers can choose to claim the loss in the year it occurred or in the previous year to potentially receive a quicker tax refund.