Flood victims whose losses weren't covered by insurance could no longer deduct those expenses from their federal taxes under President Donald Trump's proposed tax plan.
Although major details of the plan have yet to be decided, people with large medical or disaster deductions fall squarely in the "losers" camp under the Republican proposal, according to The Wall Street Journal.
"Both deductions would probably be repealed under the framework, along with those for investment interest, gambling losses and unreimbursed businesses expenses," the Journal says in an article headlined "Winners and Losers Under the Trump Tax Plan."
The process for calculating disaster losses is complicated. But homeowners who suffered property losses in the flood of 2016 have until the April 15, 2019, deadline to claim the loss.
Filing tax returns is confusing enough but will be much more complicated this year for tens …
The "winners" under the proposal include people who don't itemize their taxes, heirs of very large estates, and higher-earning owners of pass-through businesses, such as S corporations and limited-liability companies, according to the Journal. The losers include high-wage earners, who could see tax rates higher than 35 percent, and residents of high-tax states, who might no longer be allowed to write off state and local income, property and sales taxes.