Asked by Marisol Trejo on Jun 03, 2024

verifed

Verified

In 2017,the U.S.President declared a federal disaster in Arizona due to wild fires.Hamed lives in the affected area and lost his home in the fires.What choice does he have regarding when he can claim the loss on his tax return?

A) It must be claimed in 2016 if the return has not been filed by the date of the loss.
B) It must be claimed in 2017 if the loss is greater than Hamed's modified adjusted gross income.
C) It may be claimed in 2018 if an election is filed with Hamed's 2017 return.
D) It may be claimed in either 2016 or 2017.

Federal Disaster

An event causing severe damage or distress, officially declared a disaster by the federal government to make federal assistance available.

Tax Return

A document filed with state or federal authorities that reports income, expenses, and other pertinent tax information.

Wild Fires

Uncontrolled fires in wildland areas, often exacerbated by drought, wind, and heat, causing extensive damage to ecosystems and property.

  • Comprehend the guidelines for deducting losses due to theft and casualties, specifically in zones declared disaster areas by the federal government.
verifed

Verified Answer

ZK
Zybrea KnightJun 05, 2024
Final Answer :
D
Explanation :
Hamed has the option to claim the loss from the wildfires on his tax return for the year the disaster occurred (2017) or for the year prior to the disaster (2016). This special provision allows taxpayers to potentially receive a quicker tax refund to help recover from the disaster.