Helpful Tax Relief for Sanibel Homeowners Recovering from Hurricane Ian

Annual tax day is almost upon us on April 15, 2023. If you are a Sanibel island homeowner or a Captiva Island homeowner that has incurred damages from Hurricane Ian there is good news as you prepare your 2022 tax return. There are a couple of different ways that you can see some help/relief through filing your taxes for last year.

As of December 16, 2022, the governor of Florida Ron DeSantis signed into law section 197.3181 Florida statutes. This new law provides a prorated fund of property taxes where Florida residential homes are concerned if they have been rendered uninhabitable due to the effects of Hurricane Ian. To better understand the details it is a good idea to seek the advice of a tax professional. You can also look at the Hurricane Ian guide prepared by the Department of Revenue to see all of the details.

For a Sanibel or Captiva Island homeowner to be eligible for this partial tax refund of property taxes the homeowner must have owned and paid taxes on their property that has been deemed as uninhabitable for a period of 30 or more days between the dates of September 28, 2022, and December 31, 2022.

How uninhabitable is defined

According to statute 197.3181FS the term uninhabitable means "the loss of use and occupancy of a residential improvement for the purpose for which it was constructed resulting from damage to or destruction of or from a condition that compromises the structural integrity of the residential improvement which was caused by hurricane Ian or hurricane Nicole during the 2022 calendar year."

Claiming casualty losses on a federal income tax return

Both individuals and households filing federal taxes for 2022 that have been affected by Hurricane Ian and reside or have a business in the area hit by the hurricane can also claim disaster-related casualty losses. This claim is eligible for tax returns on the year that the event occurred or the year prior. Taxpayers that have been affected by hurricane damage can deduct personal property losses not covered by insurance or any other reimbursement.

This hurricane damage can be claimed due to details listed in publication 547. You can look over this publication to get more details on the claiming of casualties, thefts, and also any losses on deposits. Casualty is used to describe property damage as a result of a natural disaster such as a storm or fire or can also include a house fire, car accident, or other similar type events.

How to note this on your federal tax return

For any effective taxpayer claiming disaster loss for their 2022 tax return, the IRS suggests putting the disaster designation FL Hurricane Ian in bold letters at the top of the form and making sure to include a FEMA disaster declaration number of DR-4673–FL.

Additional help from the IRS

The IRS is also offering to waive the standard fees on requests for copies of previously filed tax returns of all taxpayers affected by the hurricane. To make sure you are not charged a standard fee make sure to put in the assigned disaster designation FL Hurricane Ian in bold letters at the top of form 4506 request for a copy of your tax return. This can also be put at the top of form 4506-T request for a transcript of a tax return. This will help the IRS to recognize the fee exemption.

If you would like more help or details about any of the hurricane Ian tax relief for Sanibel and Captiva homeowners that have been affected by the hurricane you can find information at the Lee County Property Appraiser website.

For more information about real estate on Sanibel or Captiva Island please contact us anytime.