Jan 22, 2025 | Casualty Gain, Exclusion of Taxable Gain, Federal Disaster Declaration, Insurance
If this is your first year preparing returns for clients with casualty gain/loss, you may be a bit overwhelmed (I know we certainly were in 2017 in the North Bay when we had thousands of clients lose their homes). We put together this guide to help you navigate the...
Jan 16, 2025 | Exclusion of Taxable Gain, Insurance
The answer to this and most tax questions is: It depends. There is a potential for the insurance payments to be taxable and it depends on the facts and circumstances of each case. Casualty Loss: If a Home Owner was uninsured (or under-insured) and lost their house,...
Aug 24, 2020 | Casualty Gain, Casualty Loss Deduction, Federal Disaster Declaration, Insurance
As part of the Tax Cuts and Jobs Acts, casualty loss deductions were disallowed starting in 2018 unless the loss was incurred in a federally declared disaster area. Because of the Presidential Disaster Declaration made yesterday, victims of the August 2020 CA...
Nov 27, 2017 | Casualty Loss Deduction, Insurance
Question: My tax advisor suggested that I obtain an appraisal of my property that reports the value before the fire and the value of the land after the fire in order to document the reportable loss. My insurer has advised that they are going to provide me with an...