What is the Doug LaMalfa Federal Disaster Tax Relief Certainty Act?

It is H.R. 5366, signed September 11, 2026, according to Sen. Rick Scott's office. It changes sections 165(h) and 63(b) of the tax code for personal casualty losses from major disasters that begin before January 1, 2027.

Can I deduct hurricane damage if I take the standard deduction?

Yes, if it is a qualified disaster loss, starting with 2025 returns. Your net loss is added to your standard deduction instead of being itemized.

Is the $500 floor per storm or per item?

Per casualty. The law puts the $500 in the per-casualty rule of section 165(h)(1). Publication 547 says one reduction applies to each event, however many items were damaged.

Does the new law cover my rental property or my business?

No. It covers personal casualty losses under section 165(c)(3). Business and rental losses go in Section B of Form 4684 and follow different rules.

Was there a federally declared disaster in Florida in 2025 or 2026?

Not as of September 18, 2026. FEMA's data shows no major disaster or emergency declaration for a Florida storm that began in either year. Check FEMA's declarations page for your county before you count on the new rules.

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TAX PLANNING

Disaster Tax Relief: Storm Losses Without Itemizing

A new law lets storm victims deduct personal casualty losses without itemizing, for major disasters that begin before 2027. See who qualifies in Florida.

SMAART Company

September 21, 2026

12 min read

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