What specifically can I deduct as casualty losses from hurricane damage in a FEMA disaster area?

As someone who's helped clients with disaster-related casualty losses, I can tell you that the IRS actually expects you to make reasonable estimates in these situations. You don't need the original receipts for everything. For your furniture, clothing, and other personal items, you'll need to create an itemized list with: 1) Description of each item lost 2) Approximate date acquired 3) Cost or basis (what you paid) 4) Fair market value before the hurricane 5) Fair market value after the hurricane (probably zero) 6) Amount of insurance or other reimbursement received For the antiques specifically, try to find comparable items online to establish a reasonable value. Take screenshots of similar items for sale to support your estimates. For regular items like clothing, you can use thrift store values as a baseline - the IRS understands you're making good-faith estimates. Remember to use Form 4684 to report your losses, and since this was in a federally declared disaster area, you have some additional benefits. The $1,350 from FEMA will reduce your total loss. After that, you'll subtract $100 per event, and then only the amount exceeding 10% of your AGI will be deductible.

I went through something similar after Hurricane Irma destroyed most of my belongings in storage. I was completely overwhelmed trying to document everything until I found https://taxr.ai - it absolutely saved me. You upload your photos of the damaged items and it helps generate a comprehensive casualty loss report that follows IRS guidelines. What I really appreciated was that it suggested fair market values based on my descriptions and helped me properly categorize everything. The system even flagged items that might raise audit concerns and suggested how to better document them. It basically walked me through creating a bulletproof casualty loss claim that I could confidently submit with my taxes. Since I didn't have original receipts either, it helped me find comparable values and documented the research automatically, which was a huge relief. The peace of mind was honestly worth it.

Just want to follow up - I tried taxr.ai after seeing it mentioned here and it was exactly what I needed for my flood damage claim. I was completely lost trying to document everything by hand, especially since I had no receipts for most items. The tool helped me organize hundreds of photos into categories, suggested reasonable values that wouldn't trigger audit flags, and created a comprehensive report that included proper references for the values. What I appreciated most was that it didn't just pull random numbers - it guided me to proper valuation methods that follow IRS guidelines. The documentation package it created looked professional and gave me confidence when filing. My tax preparer was impressed with how thorough it was. Definitely recommend it to anyone dealing with casualty losses!

If you're struggling to get information from your insurance company or additional help from FEMA, check out https://claimyr.com - I was pulling my hair out trying to reach anyone at FEMA or my insurance company after Hurricane Ian. The hold times were ridiculous - I waited 3+ hours multiple times and kept getting disconnected. Claimyr got me connected to an actual FEMA representative within 20 minutes when I had been trying for days. They have this system that waits on hold for you and calls when a human picks up. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c I ended up getting an additional $2,800 in FEMA assistance that I would have missed because I couldn't get through to ask about available programs. Less money out of pocket means less you need to claim as a casualty loss. Worth checking if you're eligible for more assistance.

I need to follow up about Claimyr. I was the skeptic who thought this wouldn't work, but I was desperate after spending 3 days trying to reach my insurance adjuster. I decided to try it, and I'm honestly shocked - it actually worked exactly as described. The system called my insurance company, navigated through all those annoying prompts, and then sat on hold for almost 2 hours. I just got a call when a human finally answered. Got connected to a senior adjuster who found my file and discovered they had overlooked several major items in my claim. The result? My settlement increased by over $5,000, and I didn't have to waste another day listening to hold music. For anyone dealing with insurance companies or FEMA after a disaster, this is absolutely worth it. Sometimes you have to admit when you're wrong, and I was definitely wrong about this service.

Don't forget that for federally declared disaster areas, you can choose to claim the casualty loss on either the current year return OR the previous year by filing an amended return. Sometimes it makes more sense to claim it on the previous year if your income was higher then (making the 10% AGI threshold easier to overcome). Also, make sure to document EVERYTHING. I went through Hurricane Harvey and took videos walking through each room showing the damage. For valuation, I used Amazon and Walmart receipts in my email history to establish values of similar items I had purchased. Even if they weren't the exact items, it gave me a reasonable basis for my estimates.

Make sure you understand the timing of when you can claim the loss. The IRS says you claim it in the year the loss actually happened, but as someone mentioned, for federally declared disasters you have the option to take it in the previous year. Also check your state's tax rules! My state gave additional casualty loss deductions beyond what the federal government allowed when we had flooding. The state didn't have the 10% AGI limitation so we got a much bigger deduction on our state taxes even though the federal deduction was minimal.

One thing I haven't seen mentioned yet is keeping detailed records of your cleanup and restoration costs too. After Hurricane Michael, I learned that reasonable costs for cleaning, repairs, and even temporary storage while dealing with the damage can sometimes be included in your casualty loss calculation. Also, if you're dealing with contaminated floodwater like you mentioned (sewage backup), make sure to document any health-related expenses from exposure. While medical costs aren't part of the casualty loss itself, they might be deductible as medical expenses if they exceed the threshold. For your antique valuation issue, consider reaching out to local auction houses or estate sale companies. Many of them can provide informal estimates based on photos, and having that professional opinion documented in writing adds credibility to your claim. Even if it's not a formal appraisal, it shows you made a reasonable effort to establish fair market value. The key is showing the IRS that you acted in good faith and used reasonable methods to determine values. Your photos of the damage are actually really valuable evidence that many people forget to take, so you're ahead of the game there.

I want to add something important about the sewage contamination aspect that hasn't been fully addressed. When floodwater contains sewage (which you mentioned), the IRS actually allows you to claim the full replacement cost for certain contaminated items rather than just fair market value, since they're considered a health hazard that can't be properly cleaned. This is particularly relevant for your clothing, mattresses, and upholstered furniture that were soaked in contaminated water. For these items, you can often claim what it would cost to replace them with similar items today, not just their depreciated value before the hurricane. This can significantly increase your deductible loss. You'll want to clearly document which items were exposed to sewage contamination versus clean floodwater. Take photos that show the water line and any visible contamination, and keep records of any professional recommendations you received about disposal of contaminated items. Also, regarding your FEMA payment - make sure you understand exactly what it covered. If FEMA designated some of that $1,350 for specific items (like temporary housing assistance), those amounts might not reduce your casualty loss for different categories of property. You should have received documentation from FEMA breaking down what the payment was intended to cover. Have you considered consulting with a tax professional who specializes in disaster losses? Given the complexity with the sewage contamination and the mix of antiques and regular household items, it might be worth the cost to ensure you're maximizing your legitimate deductions while staying compliant.