To start, I use Tax Slayer Pro. Entering a casualty loss is too simple (or I am!)
The software only takes into account value of the property pre casualty loss & value after casualty.
So, Let's set the stage --> October 29th, 2011 Hurricane Sandy made landfall in my surrounding neighborhoods.
I am on a peninsula - marsh land on one side - lagoons on the other.
I have a few clients (including myself) that are in a similar situations.
1) Their home was totally or largely damaged by the storm.
2) Contents of their basement and/or first floor totally flooded and ruined.
3) Some have to tear house down. Others, raise it up and repair damages
4) Some had flood insurance some did not.
5) Some took an SBA loan at 1.68% 30yr fixed to help repair the home..
Some of the questions coming out
2012 - Value of home pre storm was about $320,000.00 + Content
2012 - Value after the storm was about $245,000.00 excludes lost content
According the FEMA and the SBA there is $78,000 worth of damages to the home and property.
This did not include content (clothes, electronics, pool table, HO Train equipment, etc)
A casualty loss last year of about $62,000 was taken for the content of their home.
During 2013 $50,000 was spent fixing the home (inside & out).
During 2013 is was also discovered that our neighborhood home values too a large hit as well.
How can the casualty loss be claimed for a 2nd year?
Last year it was reported that the home value was $320,000 pre-storm.
Post storm the value of the house was estimated at $245,000.00
Over the course of 2013 $70,000 was spent repairing the home.
We understand now that due to vacant homes (abandoned) and other situations the value of the home may be even lower - $225k?
What is the best way to present this? What is required to substantiate the loss?
Obviously the
2012 - Value before Casualty $320,000
2012 - Value after casualty $245,000.
2013 - Value from 2012 $245,000.00
2013 - Costs to repair home $ 70,000.00
New Basis of home $315,000.00 ($245,000 + $70,000)
2013 - Adjusted VALUE of property $245,000.00
The software only takes into account value of the property pre casualty loss & value after casualty.
So, Let's set the stage --> October 29th, 2011 Hurricane Sandy made landfall in my surrounding neighborhoods.
I am on a peninsula - marsh land on one side - lagoons on the other.
I have a few clients (including myself) that are in a similar situations.
1) Their home was totally or largely damaged by the storm.
2) Contents of their basement and/or first floor totally flooded and ruined.
3) Some have to tear house down. Others, raise it up and repair damages
4) Some had flood insurance some did not.
5) Some took an SBA loan at 1.68% 30yr fixed to help repair the home..
Some of the questions coming out
2012 - Value of home pre storm was about $320,000.00 + Content
2012 - Value after the storm was about $245,000.00 excludes lost content
According the FEMA and the SBA there is $78,000 worth of damages to the home and property.
This did not include content (clothes, electronics, pool table, HO Train equipment, etc)
A casualty loss last year of about $62,000 was taken for the content of their home.
During 2013 $50,000 was spent fixing the home (inside & out).
During 2013 is was also discovered that our neighborhood home values too a large hit as well.
How can the casualty loss be claimed for a 2nd year?
Last year it was reported that the home value was $320,000 pre-storm.
Post storm the value of the house was estimated at $245,000.00
Over the course of 2013 $70,000 was spent repairing the home.
We understand now that due to vacant homes (abandoned) and other situations the value of the home may be even lower - $225k?
What is the best way to present this? What is required to substantiate the loss?
Obviously the
2012 - Value before Casualty $320,000
2012 - Value after casualty $245,000.
2013 - Value from 2012 $245,000.00
2013 - Costs to repair home $ 70,000.00
New Basis of home $315,000.00 ($245,000 + $70,000)
2013 - Adjusted VALUE of property $245,000.00
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