Tuesday, May 21, 2013

RECENT DISASTER RECOVERY TAX HELP QUESTIONS


RECENT DISASTER RECOVERY TAX HELP QUESTIONS


One of the ways that people read entries on this blog is by first asking questions in a internet search engine. Under the tab “Popular Searches and Posts” many of the inquiry questions are listed, I continue to add new ones that appear to be of general interest. Since I have no way of communicating directly with individuals who search this blog, I will respond to some recent inquiries that seem to be of general interest. Some of these have answers in this blog.  Here are questions that I believe should be answered whether or not answers may be on the blog.


1.
What is IRS “closed and completed transaction”?
2.
Do casualty losses on taxes trigger an IRS audit?
3.
Form 1099 reporting for property insurance proceeds?
4.
Does the 10% federal disaster exclusion only apply to principal residence?
5.
Insurance valuation after catastrophe?
6.
Repairs allowable, Casualty Loss Deduction
7.
How to report multiple items as a casualty loss   
8.
IRS Disclosure Form for Reinvested Proceeds

There is always something new on the site. Keep checking the blog to see what is new. Of course the answers that get posted on the blog are general as the inquiries do not provide enough details. As they say in many other fields: “Your results may be different as your specific facts and circumstances are unique.”

The use of the information posted on the blog can be helpful, but a complete understanding of your disaster situation by a knowledgeable tax professional who takes the time needed to draw out the unique key facts and circumstances of your disaster is essential to the proper handling of your tax reporting responsibilities. Someone who has the understanding of the subject matter is implicit in the first three inquiries of the law listed below. A knowledgeable tax professional can take reduce the confusion, guiding you through the process. A knowledgeable tax professional cannot eliminate all the stress and trauma of the event. But a qualified professional will eliminate the stress of dealing with tax codes sections that are totally alien to the usual income tax reporting and the trauma of complying with the rules, including assembling the required data, often in situations where the documentation has been destroyed by the very event that now has to be reported in one or more tax returns. These issues are inherent in the questions being asked. As I look at these questions I see they are related. They were probably asked by separate people, but that only emphasizes the need to have a complete understanding instead of asking “hot” questions; you need to be concentrating on the complete situation.

From the contacts that I have made over the years from people who have taken the next step to contact me I see that the blog has provided information that is valuable to people who have experienced a catastrophic physical loss.



This blog, “AccountantForDisasterRecovery.com” has been addressing taxpayer income tax issues related to catastrophic losses for five years
All rights to reproduce or quote any part of the chapter in any other publication are reserved by the author. Republication rights limited by the publisher of the book in which this chapter appears also apply.


JOHN TRAPANI


Certified Public Accountant


2975 E. Hillcrest Drive #403


Thousand Oaks, CA 91362


(805) 497-4411


Contact us through our website at:




Blog: www.AccountantForDisasteRrecovery.com


                                                                                                                      
                           It All Adds Up For You                     


  

This material was contributed by John Trapani. A Certified Public Accountant who has assisted taxpayers since 1976, in analyzing and reporting transactions of the type covered in this material.  
Internal Revenue Service Circular 230 Disclosure
This is a general discussion of tax law. The application of the law to specific facts may involve aspects that are not identical to the situations presented in this material. Relying on this material does not qualify as tax advice for purpose of mounting a defense of a tax position with the taxing authorities
The analysis of the tax consequences of any event is based on tax laws in effect at the time of the event.
This material was completed on the date of the posting
© 2013, John Trapani, CPA,

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