All taxpayers with a casualty loss — not just those who had received a federal disaster declaration — would become eligible to receive the federal casualty loss deduction under a bipartisan bill introduced on July 11 by U.S. Sen. Bill Cassidy (R-LA).
“Louisiana knows storms and natural disasters all too well,” Sen. Cassidy said. “The federal government should bounce people back to their feet, not stick them to the ground like flypaper. This bill provides tax relief no matter the storm.”
The Casualty Loss Deduction Restoration Act, S. 2236, which is sponsored by U.S. Sen. Richard Blumenthal (D-CT) and cosponsored by Sen. Cassidy, would amend the Internal Revenue Code of 1986 to repeal the temporary limitation on personal casualty losses, according to the bill’s text.
Sen. Blumenthal added that S. 2236 is a common-sense and practical measure that will provide financial relief to all Americans dealing with the consequences of events outside of their control.
“This bill is about simple justice and fairness to families whose crumbling foundations are decimating not only their homes, but their security and financial foundations,” he said. “This initiative would provide relief to all who have suffered damage, enabling them to deduct losses from federal income taxes. We know that disasters can strike at any time and aren’t just limited to big events like tornadoes or hurricanes.”
Companion legislation was introduced by U.S. Reps. Joe Courtney (D-CT) and Mike Rogers (R-AL) in the U.S. House of Representatives.