The most extreme category of hurricane is Category 5, where winds exceed 156 mph. Hurricane Andrew, which destroyed large swaths of Miami and south Florida in 1992, was a Category 5 hurricane. In a Category 5 storm, large trees, signs, residential and industrial buildings can be completely demolished.
A taxpayer can only deduct the amount of miscellaneous itemized deductions that exceed 2% of their adjusted gross income. For example, if a taxpayer has adjusted gross income of $50,000 with $4,000 in miscellaneous itemized deductions, the taxpayer can only deduct $3,000, since the first $1,000 is below the 2% floor.
The Itemized Deduction Phase Out. The tax changes also brought back the phase out of itemized deductions in 2013. Like the phase out of personal exemptions, this also affects taxpayers whose incomes exceed certain amounts. For these taxpayers, their deductions for things like mortgage interest, state income and sales tax, and certain other itemized deductions are reduced, but not fully eliminated.