Disaster losses
(1) Election to take deduction for preceding year
(1)Election to take deduction for preceding year#
Notwithstanding the provisions of subsection (a), any loss occurring in a disaster area and attributable to a federally declared disaster may, at the election of the taxpayer, be taken into account for the taxable year immediately preceding the taxable year in which the disaster occurred.
(2)Year of loss#
If an election is made under this subsection, the casualty resulting in the loss shall be treated for purposes of this title as having occurred in the taxable year for which the deduction is claimed.
(3)Amount of loss#
The amount of the loss taken into account in the preceding taxable year by reason of paragraph (1) shall not exceed the uncompensated amount determined on the basis of the facts existing at the date the taxpayer claims the loss.
(4)Use of disaster loan appraisals to establish amount of loss#
Nothing in this title shall be construed to prohibit the Secretary from prescribing regulations or other guidance under which an appraisal for the purpose of obtaining a loan of Federal funds or a loan guarantee from the Federal Government as a result of a federally declared disaster may be used to establish the amount of any loss described in paragraph (1) or (2).
(5)Federally declared disasters#
For purposes of this subsection—
(A) In general The term “Federally 1 1 So in original. Probably should not be capitalized. declared disaster” means any disaster subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
(B) Disaster area The term “disaster area” means the area so determined to warrant such assistance.
(5)(A)In general#
The term “Federally 1 1 So in original. Probably should not be capitalized. declared disaster” means any disaster subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.
(5)(B)Disaster area#
The term “disaster area” means the area so determined to warrant such assistance.