In 2016,the U.S.President declared a federal disaster in California due to wild fires.Helen lives in the affected area and lost her home in the fires.What choice does she have regarding when she can claim the loss on her tax return?
A)It may be claimed in 2017 if an election is filed with Helen's 2016 return.
B)It may be claimed in either 2015 or 2016.
C)It must be claimed in 2015 if the return has not been filed by the date of the loss.
D)It must be claimed in 2016 if the loss is greater than Helen's modified adjusted gross income.

Question

Quizplus · Accepted Answer

Helen can choose to claim the loss in the year prior to the disaster (2015) or in the year the disaster occurred (2016) due to the federal disaster declaration.