- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Tax Ramification on a Large Uninsured Loss from Harvey
Posted on 9/12/17 at 11:20 am
Posted on 9/12/17 at 11:20 am
Been reading up and have a handle on the tax laws I believe, my question which may seem like a dumb one is how do you come up with a exact value of your loss that will hold up if one was to be audited? Tax office has a valuation but that's not near market value imo, could one use sales of similar properties in the neighborhood as a guide? Seem like no matter what you wouldn't have anything cut a dry to back yourself up. Thanks for any guidance.
3
Posted on 9/12/17 at 11:29 am to TxWadingFool
When I flooded last year, I had purchased my house only a few months prior so we used that price. I kept every receipt for anything I spent during the rebuilding process.
Posted on 9/12/17 at 11:36 am to TxWadingFool
quote:Remember that the loss will at least be partially offset by any grants or donations received for the rebuild/restore. That includes FEMA.
a Large Uninsured Loss
Posted on 9/12/17 at 12:01 pm to ell_13
Been denied by FEMA since we didn't live there a majority of the previous 12 months, the Rockport area is made up of hundreds if not thousands of weekend / vacation homes that won't qualify for any governmental assistance. Same thing happened in the Jersey area after Sandy, I have never been asked by the tax man when they collect but when they go to pay out that seems to matter 
Posted on 9/12/17 at 2:11 pm to TxWadingFool
You can get an appraisal done. That's a pretty solid way to handle it.
Most people use rebuilding costs as a guide.
Most people use rebuilding costs as a guide.
Posted on 9/12/17 at 3:35 pm to TxWadingFool
quote:So it was flood damage? Or wind?
the Rockport area is made up of hundreds if not thousands of weekend / vacation homes
Posted on 9/12/17 at 4:05 pm to LSUFanHouston
quote:
You can get an appraisal done. That's a pretty solid way to handle it.
But the casualty loss would be limited to his basis not fare market value.
Posted on 9/12/17 at 4:14 pm to SippyCup
quote:
But the casualty loss would be limited to his basis not fare market value.
The casualty loss is the reduction in FMV value, limited to his basis.
If the FMV reduction is more than his basis, then yes, it's limited to his basis. The appraisal would still give support for that reduction.
Posted on 9/12/17 at 5:21 pm to ell_13
Personally and in most cases around Rockport it was wind, some isolated areas it was flood from the surge, in laws had flood, wind, and home owners insurance and had the whole bottom floor wiped out as well as $20,000 steel building / boat barn from a 12' storm surge, they are fighting with their insurance now over all of that, wind and homeowners are taking care of the upper floor since the roof was taken off but the ground level stuff isn't so cut and dry it seems. Ours was a older place we couldn't get insurance on without dropping a bunch of money on it to bring up to code so I'll just bite the bullet and eat the loss but would be nice to get all the credit for it I can with the IRS.
Posted on 9/12/17 at 11:41 pm to TxWadingFool
quote:
would be nice to get all the credit for it I can with the IRS.
I'm not versed in tax law, but I would do this: consult with a CPA, and suggest that you have a retrospective appraisal done that states the value before damages, and then a current market value appraisal that states the value after damages. The difference in the two values could be your loss, if your tax advisor agrees to it.
Explain the situation to the appraiser on the front end, and have him work with your tax advisor. Simple things like a statement in the appraisal that the intended use of the appraisal is to define the loss in value for tax reporting purposes can carry the day with the IRS. In times of major weather issues that we have just seen, federal agencies can actually be agreeable when they are presented with the correct information from CPAs and licensed appraisers.
Good luck.
Posted on 9/13/17 at 5:51 am to Bill Parker?
After Katrina they got rid of the income % of loss and let you deduct the first dollar. We did not rebuild the camp. We had pictures of the place and made a list with approx values for the deductions. It helped some but it doesn't make you whole that is for sure.
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News