I just had my first hurricane Sandy situation. A cabin (used for duck hunting vacations) in NJ was flooded out by the hurricane. It's value before was 158,000. The Govt. came in and condemned it. At this point, my client is not sure if he is going to tear it down or try to fix it up. Does he have any tax deduction at this point given the special items in the law for hurricane Sandy. Thx.
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Why not a personal casualty
I am not in NJ and I did not know there were special rules for Sandy. I do believe that he could have amended 2011 and put the casualty there because it was a Federally declared disaster but now that would be rather silly even if it's still legal. Regardless of what he eventually does with the property does he not have a personal casualty equal to the difference between fmf before and fmv after minus ten percent of his agi and minus 100 bucks? -
Thank you erchess, it does appear so and I will probably just take the casualty on his 2012 1040.Comment
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If in federally-declared disaster area, does he get any other special benefits, no 10% reduction, for example? (I'm in CT and should know this, but none of my clients were hard hit, even those on LI Sound with destruction all around them. If one of my fallen trees had angled over 1 more degree, my house would not be here; but then neither would I, so I wouldn't be preparing tax returns with Sandy damage in that case, either!)Comment
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No 10% or 100 deduction only in the case of a business
Rita - I just did one last week and had to look it up. The "No 10% deduction" for personal casualties was only for a year or two - I believe it ended in 2010?? And if it is a business casualty loss, no 10% rule and no $100 deduction.Originally posted by Lion View Post
MikeComment
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Thank you for your comments, I subscribe to Thomson Reuters PPC Tax Action Bulletins and the TAM-1588 dated 2-12-13 just came in, it's excellent and goes over everything on Disaster relief.Comment
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