Friday, September 1, 2017


* Let me begin with the repeat of an item from Tuesday’s BUZZ - Kelly Philips Erb, FORBES.COM’s TaxGril, was the first to give us the word that “IRS Announces Tax Relief For Taxpayers Affected By Hurricane Harvey”.
* Kay Bell warns us to “Beware of fake charities in the wake of Hurricane Harvey” at DON’T MESS WITH TAXES.
Click here for tips from the Department of Justice.
When claiming a casualty loss on your home it is treated as if you sold your home for its market value on the day after the casualty.  You home may have been worth $500,000 before the casualty, but if your “basis” in the home is only $200,000 your loss deduction is limited to $200,000, plus any insurance payments and less the statutory $100 and 10% of AGI deductions.
Your basis is the purchase price of the home plus the applicable closing costs (legal fees, title insurance, etc) paid at the purchase plus the cost of any capital improvements made to the home over the years.
It is actually possible to have a taxable gain from a casualty loss if the insurance and other payments exceed your basis.
* Kelly Phillips Erb also posts on this topic, explaining the process of Claiming A Loss After A Disaster Like Hurricane Harvey” at FORBES.COM.

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