New Rules for Deducting Disaster Area Losses (Publication 225, Farmer's Tax Guide, chapter 11) -- 16-FEB-2017
After the 2016 revision of Publication 225 was printed, the IRS issued new rules for when to deduct a casualty loss that occurred in a federally declared disaster area. The new rules are effective as of October 13, 2016. Accordingly, the rules discussed in chapter 11 under "When to deduct the loss" under "Disaster Area Losses" are incorrect. The new rules are discussed under "Disaster Area Losses" in Publication 547, Casualties, Disasters, and Thefts.