* 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.
* And Kay reminds
us that “Home basis, not market value, key amount in calculating disaster loss tax claim” –
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.
* Also at
FORBES.COM Ashlea Ebeling reports “Tax Relief For Hurricane Harvey Victims: Retirement Account Withdrawal Rules Loosened”.
TTFN
No comments:
Post a Comment