Hurricane Katrina victim

[oceanlovin'ea]

I have a client who had a rental house that was damaged in the Hurricane. He is still working on rebuilding it. He's got delayed since they sent him to jail because he took FEMA money that he wasn't supposed to get because it was rental property and not his personal residence. But all over the paperwork he filled out he put that it was rental property. He is 71 years old and has a heart condition and they sent him to jail for 18 months.

Anyway that is off the subject. Can I still claim the property taxes and depreciation on Schedule E this year? Last year I could but time is slipping by and the property is not available for rent.

I wonder if any of the legal fees are deductible. Everything stems from his rental property which is income producing property. Probably not.

Linda F

[S T]

Is this your Same Taxpayer

Linda,

Is this the same taxpayer that you posted about in an eariler thread?

http://www.thetaxbook.com/forums/showthread.php?t=6118&highlight=fema

Seems like a huge case of misjustice

Is the property "not for rent" in 2007 due to the repair isuses from the Katrina Damage or other factors?

Probably more info regarding the status in 2007 would assist in answers.

Sandy

[oceanlovin'ea]

He is still repairing the house. He is doing the work himself and because of his age and the fact that they live in Florida it is slow going. But he is making progress or at least he was.

So it is not for rent because of the Hurricane damage. I didn't remember if there were special provisions for something like that.

Yes, it is the same man I posted about before. It is terrible. His wife got probation. They are trying to get the case transferred to Florida. If they can get that done, he will get out because Florida doesn't put senior citizens in prison for things like that.

Linda F