In order to provide assistance to those who have suffered losses or damages to property resulting from the recent storms and flooding, Governor Cayetano asked the President of the United States to proclaim the State of Hawaii a disaster area. In response to Governor Cayetano's request, President Clinton has declared the Island of Oahu a disaster area.
RE: INCOME TAX RELIEF FOR STORM AND FLOODING LOSSES
For purposes of the Hawaii Income Tax Law, you may claim all of the casualty loss deductions allowed by Section 165 of the Internal Revenue Code. A casualty loss on business property is deductible in full. A loss on nonbusiness property is deductible to the extent it exceeds $100.00 plus 10 percent of adjusted gross income. The following options are available after you have determined the amount of your losses:
Taxpayers suffering losses to property on the Island of Oahu
EXAMPLE: If you elect to deduct your losses on your 1996 return, you may carry back your unused losses to 1993 (3 year carryback) or carry over your unused losses through 2011 (15 year carryover). If you wish, you may elect on a timely filed tax return to forego the carryback and use only the fifteen-year carryover loss provision.PLEASE CONTACT YOUR NEAREST DISTRICT TAX OFFICE OF THE DEPARTMENT OF TAXATION SHOULD YOU HAVE ANY QUESTIONS OR IF YOU NEED FURTHER ASSISTANCE.