Temporary Housing in Mandatory Evacuation

[Craig]

We were in a Mandatory evacuation zone (Galveston County) during Hurrican Rita. We evacuated to San Antone, Texas and incurred a motel expense of $795.00. We are retired and were unprepaired for this expense. Our total gross income is less than $35,000 per year and we file standard deduction (1040) We also have the reciepts for the motel bill. The $795.00 loss has not been re-imbursed by FEMA and no insurance coverage was claimed.

1.Can we claim this loss on 2005 1040?

2.If so, what form would we use to file this loss?

3. If we do not claim this loss on our 2005 return, can it be claimed on 2006 tax return?

Thanks for any help

Craig

[Bees Knees]

Craig,

I am very sorry to hear about your loss. Unfortunately, there are no tax deductions available for temporary living expenses for people who were displaced by the hurricanes.

If you click on the updates page at the top of this screen, and then click on New Tax Law Legislation, you will see two links to tax legislation passed this past year for those affected by the hurricanes. One for Katrina, and another one for Katrina, Wilma, and Rita. Maybe something else from one of those laws might apply to your situation.

[craig]

Casualty Losses Limitations Suspended
Page 1-13, TheTaxBook™
The same provision under the Katrina Emergency Tax Relief Act of 2005 has been extended to victims of Hurricanes Rita and Wilma. The 10% AGI limitation and the $100 per casualty reduction does not apply to casualty losses in the hurricane disaster area on or after:

August 25, 2005 for losses attributable to Hurricane Katrina,
September 23, 2005 for losses attributable to Hurricane Rita, or
October 23, 2005 for losses attributable to Hurricane Wilma.
In the case of any other losses, the casualty loss rules are applied without regard to the losses from the hurricanes.

Thanks for you comment Bees....I had already read that part of the rules and that was why i was asking the question....my receipts are dated 9-23 to 9-25 2005. I wasnt sure if the change pertained in my situation.

Thanks again