INCOME TAXES AND
DISASTERS – 2012 YEAR-END SUMMARY
Was
2012 a big year for disasters? Well it depends on how you look at it. There
were 47 declared disasters in 2012. Fourteen years, starting with 1953 exceeded
the 47 count. Ten of the fourteen fell in the period between 2002 and 2011.
Three occurred between 1996 and 1999. The first year that exceeded 47 declarations
was 1972.
Of
the 47 incidents in 2012, twelve of them relate to twelve states affected by
the October / November Hurricane Sandy (also referred to Super Storm Sandy).
The first 2012 declaration was actually
a delayed declaration for a November 30, 2011 incident (Severe Storm And Snowstorm for Massachusetts).
We wish all those who experienced these events, as well as the
other significant events that were not declared disaster areas and anyone who
had an individual loss, all the best in their recovery process.
Below
is a list of 2012 disaster declarations taken from the www.fema.gov/disasters, to get more
details, click on the incident number or the incident description.
2012 Disaster
Declarations for 2012 from FEMA.Gov
Incident Number
|
Declaration Date
|
State
|
Incident Description
|
12/19/2012
|
Massachusetts
|
||
12/5/2012
|
District of Columbia
|
||
11/28/2012
|
New Hampshire
|
||
11/27/2012
|
Alaska
|
||
11/27/2012
|
West Virginia
|
||
11/26/2012
|
Virginia
|
||
11/20/2012
|
Maryland
|
||
11/16/2012
|
Delaware
|
||
11/3/2012
|
Rhode Island
|
||
11/3/2012
|
Utah
|
||
10/30/2012
|
Connecticut
|
||
10/30/2012
|
New Jersey
|
||
10/30/2012
|
New York
|
||
10/18/2012
|
Florida
|
||
9/25/2012
|
Washington
|
||
9/21/2012
|
Alabama
|
||
8/29/2012
|
Mississippi
|
||
8/29/2012
|
Louisiana
|
||
8/24/2012
|
New Mexico
|
||
8/22/2012
|
Oklahoma
|
||
8/20/2012
|
Ohio
|
||
8/2/2012
|
Wisconsin
|
||
8/2/2012
|
Maryland
|
||
8/2/2012
|
Montana
|
||
7/31/2012
|
District of Columbia
|
||
7/27/2012
|
Virginia
|
||
7/23/2012
|
West Virginia
|
||
7/19/2012
|
New Jersey
|
||
7/6/2012
|
Minnesota
|
||
7/3/2012
|
Florida
|
||
6/28/2012
|
Colorado
|
||
6/22/2012
|
Vermont
|
||
6/15/2012
|
New Hampshire
|
||
6/14/2012
|
Oklahoma
|
||
5/24/2012
|
Kansas
|
||
4/18/2012
|
Hawaii
|
||
3/22/2012
|
West Virginia
|
||
3/16/2012
|
West Virginia
|
||
3/16/2012
|
Tennessee
|
||
3/9/2012
|
Indiana
|
||
3/6/2012
|
Kentucky
|
||
3/5/2012
|
Washington
|
||
3/2/2012
|
Oregon
|
||
2/2/2012
|
Alaska
|
||
2/1/2012
|
Alabama
|
||
2/1/2012
|
Utah
|
||
2012 Disaster
Declarations for 2011 from FEMA.Gov
|
|||
1/6/2012
|
Massachusetts (11-30-2011 Inceident - delayed declaration)
|
||
Here
is a list of prior blog entries that have been organized by significant
category.
CATEGORY
|
Date Posted
|
BLOG TOPIC TITLE
|
||
DISASTER RECOVERY TOPICS
|
||||
DISASTER TOPICS
|
10/7/2011
|
THE PROCESS OF RECOVERY – POR
|
||
DISASTER TOPICS
|
5/19/2011
|
WHAT ARE THE INCOME TAX ISSUES IN THE PROCESS OF RECOVERY
|
||
YEAR-END CONSIDERATIONS
|
||||
YEAR-END CONSIDERATIONS
|
12/18/2012
|
2012 YEAR-END RECOVERY
TAX CONSIDERATIONS
|
||
EXTESNIONS
|
12/12/2012
|
DO YOU NEED AN EXTESNION
OF TIME TO REPLACE OR REPAIR PROPERTY DAMAGED IN A DISASTER?
|
||
DISASTER RECOVERY
TOPICS
|
||||
DISASTER RECOVERY PLANNING
|
9/9/2012
|
PLANNING FOR FAMILY AND HOME DISASTER RECOVERY
|
||
DISASTER PLANNING
|
5/27/2010
|
WHAT IS DISASTER RECOVERY SECURITY?
|
||
DEFINITION OF A DEDUCTIBLE
LOSS
|
||||
DEFINITION OF A CASUALTY - MUDSLIDES
|
10/12/2011
|
MUDSLIDE – IS THIS A CASUALTY LOSS?
|
||
DEFINITION OF A CASUALTY
|
6/9/2012
|
WHAT IS A CASUALTY?
|
||
DOCUMENTATION
|
||||
DOCUMENTATION
|
4/2/2009
|
DOCUMENTATION
|
||
DETERMINING THE AMOUNT OF A
LOSS
|
||||
A GAIN OR A LOSS
|
11/21/2011
|
WAS IT A CASUALTY LOSS OR AN INVOLUNTARY CONVERSION GAIN
|
||
A GAIN - APPRAISAL METHOD VALUATION
|
6/18/2008
|
FIGURING THE LOSS – MARKET VALUE METHOD
|
||
A GAIN - COST OF REPAIRS VALUATION
|
5/27/2011
|
Why is the Cost of Repairs Method of Loss Valuation not the one
to use?
|
||
A GAIN - COST OF REPAIRS VALUATION
|
7/16/2008
|
LOSS VALUATION COST OF REPAIRS METHOD
|
||
REPLACEMENT DECISIONS
|
||||
A GAIN - BUY OR REPAIR
|
6/12/2008
|
SHOULD YOU BUY A REPLACEMENT HOME?
|
||
IMPLICATIONS OF MAKING A
POOR DECISION
|
||||
BAD DECISIONS
|
12/29/2010
|
WHY CAN’T IT JUST BE DONE RIGHT THE FIRST TIME?
|
||
BAD DECISIONS
|
7/6/2012
|
PERILS OF DISASTER TAX REPORTING ERRORS
|
||
A GAIN OR A LOSS - BAD DECISIONS
|
9/12/2011
|
DON'T RUSH TO DEDUCT!
|
||
PARTIAL LOSSES
|
||||
PARTIAL LOSSES
|
10/27/2008
|
WHAT IF YOUR HOUSE DID NOT BURN DOWN?
|
||
PERSONAL PROPERTY LOSSES
|
||||
PERSONAL PROPERTY LOSSES
|
7/21/2008
|
PERSONAL PROPERTY LOSSES – DIFFICULT SITUATION ORNO PROBLEM
|
||
PERSONAL PROPERTY
LOSSES
|
||||
Order to Demolish
|
11/20/2012
|
HOW DOES AN ORDER TO DEMOLISH AFFECT YOU TAX STATUS?
|
||
CARRY BACK OF CURRENT YEAR
DISASTER LOSS
|
||||
CARRY BACK OF CURRENT YEAR DISASTER LOSS
|
1/26/2009
|
DEADLINE FOR DISASTER FILINGS TAX FILING DEADLINES
|
||
CARRY BACK OF CURRENT YEAR DISASTER LOSS
|
3/29/2010
|
DON'T MISS THE APRIL 15TH DEADLINE TO FILE AND AMENDED RETURN
|
||
CARRY BACK OF CURRENT YEAR DISASTER LOSS
|
5/26/2010
|
DEADLINE FOR THOSE WHO EXPERIENCED THE APRIL 4, 2010
|
||
CARRY BACK OF CURRENT YEAR DISASTER LOSS
|
3/30/2012
|
DON'T MISS THE APRIL 17TH DEADLINE TO FILE AND AMENDED RETURN
|
||
PUBLIC ADJUSTERS
|
||||
PUBLIC ADJUSTER FEES
|
2/9/2012
|
HOW DO YOU TREAT PUBLIC ADJUSTER’S FEES
|
||
REPORTING INSURANCE
PROCEEDS - A GAIN
|
||||
REPORTING INSURANCE PROCEEDS - A GAIN
|
8/24/2012
|
WHAT... YOU DID NOT REPORT INSURANCE PROCEEDS
|
||
REPORTING INSURANCE
PROCEEDS - A GAIN
|
||||
BUSINESS LOSSES
|
3/29/2010
|
ARE BUSINESS LOSSES DIFFERENT?
|
||
OTHER ISSUES AND CONCERNS
|
||||
New Taxes for 2013
|
9/17/2012
|
NEW TAXES FOR 2013 COULD AFFECT YOUR DECISIONS
|
||
IRS Audit Tips
|
10/28/2012
|
TWO AUDIT TIPS THAT COULD SAVE YOU A LOT OF STRESS
|
||
DISASTER DECLARATIONS
|
||||
DISASTER DECLARATIONS
|
12/19/2008
|
LARGE EVENTS MAY NOT GET FEDERAL ASSISTANCE DISASTER DECLARATION
|
||
DISASTER DECLARATIONS
|
11/17/2012
|
2012 DISASTERS - MORE
THAN “SANDY”
|
||
DISASTER DECLARATIONS
|
11/21/2012
|
FROM IRS WEBSITE,
“AROUND THE NATION” NOVEMBER 21, 2012:
|
||
DISASTER DECLARATIONS
|
11/5/2012
|
HURRICANE SANDY -
SCHEDULE OF PROFESSIONAL EDUCATION WEBCASTS FOR CPAS
|
||
DISASTER DECLARATIONS
|
11/2/2012
|
DOES YOUR LOSS QUALIFY AS A DISASTER?
|
||
DISASTER DECLARATIONS
|
10/30/2012
|
HURRICANE SANDY – FEMA DISASTER DECLARATIONS
|
||
DISASTER DECLARATIONS
|
10/29/2012
|
HURRICANE SANDY – NO DISASTER DECLARATION YET
|
||
DISASTER DECLARATIONS
|
3/18/2012
|
WINTER 2012 FEDERAL DISASTER DECLARATIONS
|
||
DISASTER DECLARATIONS
|
11/19/2009
|
WHAT DISASTER?
|
||
DISASTER DECLARATIONS
|
7/7/2009
|
IT'S "YOUR" DISASTER
|
||
DISASTER DECLARATIONS
|
6/6/2009
|
IS THE SANTA BARBARA JESUSITA FIRE TREATED DIFFERENT
|
||
A
comprehensive discussion of disaster recovery topics was posted in 2011. The
contents of the “Process of Recovery” sections are listed below. Use this along
with the above blog entries.
THE
PROCESS OF RECOVERY - INCOME AND PROPERTY TAXES
|
||
P. of R. Part 1
|
||
1
|
Tools for Recovery
|
|
2
|
Income Tax Laws Affect People Who Experience a Loss
|
|
3
|
Insurance vs. Other Support
|
|
4
|
Cost Basis
|
|
5
|
Documenting – A gain or a loss?
|
|
6
|
Tax Reporting Follows the Insurance Proceeds
|
|
P. of R. Part 2
|
||
7
|
No Gain or Loss
|
|
8
|
A Loss
|
|
P. of R. part 3
|
||
9
|
A Gain
|
|
10
|
Time Period to Complete Qualified Replacements
|
|
11
|
Statute of Limitations
|
|
P. of R. Part 4
|
||
12
|
“Qualified Replacement Personal
Use Property”
|
|
13
|
Sale of Residual Land / or Hold
for Later Sale
|
|
14
|
Insurance vs. Income Tax
|
|
P. of R. Part 5
|
||
15
|
Things Can Get Worse
|
|
16
|
Changes and “Corrections”
|
|
17
|
Part Personal Use / Part Business
|
|
P. of R. Part 6
|
||
18
|
Affect of Changing Use After Replacement
|
|
19
|
ALE – Additional Living Expense
|
|
20
|
Experts – Tax reporting
|
|
P. of R. Part 7
|
||
21
|
Law Suits, Expenses Incurred
|
|
22
|
Mortgage Interest
|
|
23
|
IRS Audits – Good Faith Reporting
|
|
24
|
Property Tax Issues
|
|
P.
of R. - Disasters Part 8
|
||
25
|
Tax Code Provisions Available in Federal Disaster Areas –
Primary Residence:
|
|
Best wishes to all
those involved in the recovery process, whether from a major disaster, an
undeclared disaster or a single loss event. At the offices of JOHN TRAPANI, Certified Public Accountant, we are
available to assist you with the complexities of the tax issues related to
recovering from a physical catastrophic loss.
For those who are
located in one of the twelve states that declared a disaster area as a result
of Hurricane Sandy, also called Super Storm Sandy, see the tab at the upper
right corner at the top of the blog.
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
© 2012, John Trapani, CPA,
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