Disaster Recovery Income Tax Advice: March 2012

Friday, March 30, 2012

DON'T MISS THE APRIL 17TH DEADLINE TO FILE AND AMENDED RETURN

DON'T MISS THE APRIL 17TH DEADLINE TO FILE AND AMENDED RETURN

See new information posted March 29, 2017:
HOW DO YOU ELECT TO CLAIM LOSS IN YEAR PRECEDING “DISASTER YEAR”

There were 99 disasters in 2011.You can view the list and get details of each declaration at "http://www.fema.gov/news/disaster_totals_annual.fema."

You can also get a quick view of qualified federal disasters at “BEST WISHES TO THOSE WHO CONTINUE TO DEAL WITH DISASTER RECOVERY” on this blog.

If you have a deductible loss related to one of the 2011 declarations, you can claim the loss on either your 2011 or 2010 income tax return. By now your 2010 return should have been filed, so yu you would claim the loss in 2010 on an amended return for that year.

There is a looming deadline for making that election. April 17, 2011 is the deadline. There are no extension allowed to decide to claim a 2011 disaster loss on your 2010 return.

After April 17, 2011, you will only be able to claim the loss only on your 2011 return.

There are no limitations on who can make the election to deduct the disaster loss on either the 2010 or 2011 return, except that it must be one of the 99 disasters listed on the FEMA website.

If you need assistance in making the claimed deduction, IRS pub 547 can be useful.

If you still need help - send me an email.

BUT be careful. See other blog posts:

9-12-2011: DON'T RUSH TO DEDUCT!

5-27-2011: Why is the Cost of Repairs Method of Loss Valuation not the one to use?

7/16/2008: Loss Valuation Cost of Repairs Method

6/18/2008: Figuring the Loss – Market Value Method

All rights to reproduce or quote any part of the chapter in any other publication are reserved by the author. Republication rights limited by the publisher of the book in which this chapter appears also apply.

	JOHN TRAPANI
	Certified Public Accountant
	2975 E. Hillcrest Drive #403
	Thousand Oaks, CA 91362
	(805) 497-4411 E-mail John@TrapaniCPA.com
	Website: www.TrapaniCPA.com
	Blog: www.AccountantForDisasteRrecovery.com
	It All Adds Up For You

This material was contributed by John Trapani. A Certified Public Accountant who has assisted taxpayers since 1976, in analyzing and reporting transactions of the type covered in this material.

Internal Revenue Service Circular 230 Disclosure

This is a general discussion of tax law. The application of the law to specific facts may involve aspects that are not identical to the situations presented in this material. Relying on this material does not qualify as tax advice for purpose of mounting a defense of a tax position with the taxing authorities

The analysis of the tax consequences of any event is based on tax laws in effect at the time of the event.

This material was completed on the date of the posting

Sunday, March 18, 2012

Winter 2012 Federal Disaster Declarations

Winter 2012 Federal Disaster Declarations

The winter weather has been brutal for people throughout the Midwest. Many other entries in this blog (www.AccountantForDisasterRecovery.com) provide tax assistance to those who have experienced these severe winter events. Below is a list as of March 18, 2012 of the federal disaster declarations. Go to the FEMA website (http://www.fema.gov/news/disasters.fema?year=2012) and select the county that you live in to see the details of the declaration that applies to your situation.

The FEMA declaration number and the date that you experienced the event should be included in your tax return. While you may be entitled to a tax deduction that you can claim on an amended 2011 tax return, see “Don’t Rush To Deduct” if you have insurance. Your insurance coverage should be exhausted before you look to tax deductions to recover any financial loss.

Major Disaster Declarations

Number	Date	State	Incident Description
4060	03/16	Tennessee	Severe Storms, Tornadoes, Straight-line Winds, and Flooding
4059	03/16	West Virginia	Severe Storms, Tornadoes, Flooding, Mudslides, And Landslides
4058	03/09	Indiana	Severe Storms, Straight-line Winds, and Tornadoes
4057	03/06	Kentucky	Severe Storms, Tornadoes, Straight-line Winds, and Flooding
4056	03/05	Washington	Severe Winter Storm, Flooding, Landslides, and Mudslides
4055	03/02	Oregon	Severe Winter Storm, Flooding, Landslides, and Mudslides
4054	02/02	Alaska	Severe Storm
4053	02/01	Utah	Severe Storm
4052	02/01	Alabama	Severe Storms, Tornadoes, Straight-Line Winds, And Flooding
4051	01/06	Massachusetts	Severe Storm And Snowstorm

If you do have a loss, see other entries in this blog, specifically,

2/9/2012	HOW DO YOU TREAT PUBLIC ADJUSTER’S FEES
11/21/2011	Was it a Casualty Loss or an Involuntary Conversion Gain
10/12/2011	Mudslide – Is this a casualty loss?
10/7/2011	THE PROCESS OF RECOVERY – POR
9/12/2011	DON'T RUSH TO DEDUCT!
5/27/2011	Why is the Cost of Repairs Method of Loss Valuation
5/19/2011	WHAT ARE THE INCOME TAX ISSUES IN THE PROCESS OF RECOVERY
3/29/2010	ARE BUSINESS LOSSES DIFFERENT?
3/29/2010	DON'T MISS THE APRIL 15TH DEADLINE TO FILE AND AMENDED RETURN
4/2/2009	Documentation
7/21/2008	Personal Property Losses – Difficult Situation or No Problem
7/16/2008	Loss Valuation Cost of Repairs Method
6/18/2008	Figuring the Loss – Market Value Method
6/12/2008	Should You Buy a Replacement Home?
6/4/2008	DISASTER RECOVERY OUTLINE OF TAX TOPICS OF CONCERN
5/3/2008	10 Actions to take after a Disaster
4/30/2008	Don’t be a Victim

A FEMA disaster declaration opens up a section of the Federal Internal Revenue Code with tax benefits that can assist you with your recovery. Even if your county is not covered, the Internal Revenue Code still provides benefits that can ease your situation.

	JOHN TRAPANI
	Certified Public Accountant
	2975 E. Hillcrest Drive #403
	Thousand Oaks, CA 91362
	(805) 497-4411 E-mail John@TrapaniCPA.com
	Website: www.TrapaniCPA.com
	Blog: www.AccountantForDisasteRrecovery.com
	It All Adds Up For You