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.
Itemized deductions are expenses allowed by the Internal Revenue Service (IRS) to decrease a taxpayerâs taxable income. Itemized deductions allow taxpayers to list out qualified expenses on their tax return, the sum of which (based on their tax bracket) is used to lower their adjusted gross income (AGI).