S.Amdt. 2792

Ms. Baldwin submitted this amendment to hold the line for everyday folks who have suffered unexpected property damage. If we want to hold our elected officials accountable, we need to look at how tax rules affect regular people when disaster strikes. This amendment aims to change the bill by bringing back a tax deduction that people rely on when things go wrong.

What it changes and adds to the bill

• Reinstatement of Deduction: It strikes section 70109 and puts in a rule to completely bring back the deduction for personal casualty losses by removing paragraph (5) from section 165(h).

• Effective Date: This change applies to taxable years starting after December 31, 2017.

• Extension of Amended Return Window: It gives taxpayers who filed a return ending before January 1, 2022, extra time to claim this deduction if they missed out because it was suspended when they originally filed.

• Specific Limits: The extended time limit for filing and refunds applies only to amendments and claims that deal directly with the casualty loss deduction.