WASHINGTON — The tax bill currently making its way through the Congress, which is expected to pass and be signed by the president, would eliminate a deduction that benefits victims of hurricanes, tornadoes, wildfires, and other natural disasters, according to Newsweek.
The deduction in its current form allows tax filers to claim up to $20,000 dollars, according to the Internal Revenue Service, on uninsured losses in cases of natural disaster. In 2015 alone, the IRS saw $1.6 billion in natural disaster deductions, according to Newsweek.
The tax bill currently under debate looks to eliminate the deduction for victims of any natural disaster not declared an official federal disaster by the president such as those due to localized storms.
With 2017 concluding as one of the most devastating years for natural disasters — including Hurricanes Irma, Harvey, and Maria, which are among the costliest in U.S. history, and the most destructive wildfire year in California history, which caused approximately $180 worth of damage and an economic impact estimated at more than $500 billion, according to AccuWeather — there has been push back from those aware of the deduction’s elimination.
If the tax bill passes with the elimination in its current form, restoration professionals can expect at least some affect on their bottom line moving forward.