Can I deduct Hurricane Francine home repair costs when homeowners insurance won't cover it due to high deductible?

Yes, you might be able to deduct these losses, but there are specific requirements. Hurricane Francine damage would qualify as a casualty loss from a federally declared disaster, which means you can claim it on your taxes. For the 2024 tax year, you'll need to itemize deductions on Schedule A rather than taking the standard deduction. The calculation is a bit complex: your loss amount (the $60,000 repair cost) would be reduced by your insurance reimbursement (which is $0 in your case), then reduced by $100, and finally reduced by 10% of your adjusted gross income (AGI). So if your AGI is $80,000, you'd calculate: $60,000 - $0 - $100 - $8,000 = $51,900 potential deduction. This could be substantial, but only if your total itemized deductions exceed your standard deduction.

After Hurricane Ida destroyed half my house in 2021, I was in a similar situation with a high deductible and ended up doing most repairs out of pocket. I was totally lost on how to handle the tax implications until I found taxr.ai (https://taxr.ai). They have this document analyzer that actually scanned all my repair invoices, insurance denial letters, and contractor estimates, then told me exactly what was deductible and what wasn't. The thing that really helped me was how their system sorted my expenses into different categories - some qualified as casualty losses while others were actually home improvements that could affect my basis when I eventually sell. It's way more nuanced than I thought, and I definitely wouldn't have figured it out on my own.

Just wanted to update that I tried taxr.ai after seeing the recommendation here. I uploaded pictures of my insurance denial letter and all my contractor quotes from my phone, and it actually broke down what would qualify as casualty losses vs. capital improvements. Saved me from making a pretty big mistake because I was planning to deduct everything! Turns out the new improved materials we're using for the roof would count differently than just replacing what was damaged. Really helpful for my Hurricane Francine damage situation.

If you're planning to claim these hurricane deductions, be prepared for potential IRS questions. I had a similar situation after a tornado, claimed the losses, and got stuck in verification hell with the IRS for months. Eventually I discovered Claimyr (https://claimyr.com) after watching their demo at https://youtu.be/_kiP6q8DX5c and it literally saved me. I was getting nowhere with the IRS automated system, just endless holds and disconnects when trying to explain my disaster relief deductions. Claimyr got me connected to a real IRS agent in about 15 minutes who actually helped resolve the verification issues on my disaster claim. The agent even helped me understand some additional disaster relief provisions I qualified for.

I need to apologize to the folks at Claimyr. After my skeptical comment, I decided to try it anyway because I was desperate to talk to someone at the IRS about my hurricane deduction questions. I was honestly shocked when I got a call back in about 20 minutes saying they had an IRS agent on the line. The agent was able to confirm that my Hurricane Francine repairs would qualify as casualty losses and explained exactly which forms I'd need to file. She even emailed me some disaster relief resources I hadn't found on my own. Definitely worth it for the time saved and the peace of mind knowing I'm filing correctly.

Don't forget to look into FEMA assistance too. Even if you have insurance, they might help with costs that insurance won't cover due to your deductible. There are deadlines though, so apply ASAP if you haven't already. We got about $7,000 from FEMA after Hurricane Ian when our insurance didn't cover everything.

Something nobody's mentioned - if you're claiming a casualty loss deduction, make sure you adjust your home's tax basis afterward! The amount you deduct should reduce your home's basis, which could affect capital gains when you eventually sell. I learned this the hard way after Hurricane Harvey repairs.

Just a heads up - if you're going to claim this as a casualty loss, make sure you have really solid documentation of the "before" condition of your home. The IRS will want proof that the damage was specifically caused by Hurricane Francine and not pre-existing issues or normal wear and tear. I'd recommend taking detailed photos of all the damage before any repairs start (sounds like you might still have time since the adjuster is coming tomorrow). Also get a written report from the insurance adjuster even though they're not paying - that professional assessment could be crucial if the IRS questions your deduction later. One more thing - consider getting multiple contractor estimates, not just one. Having 2-3 estimates that are reasonably close to each other strengthens your case for the amount you're claiming. The IRS sometimes challenges casualty loss amounts if they think the repair costs seem inflated.