So you were impacted by Hurricane Sandy (or some other catastrophic event in 2012) and some or all of your losses were not covered. Keep your chin up and know that all is not lost yet!
The Internal Revenue Code ("tax code") provides some relief through provisions for Casualty loss deductions. Chief among these provisions is your ability to claim the loss on the tax return for the year in which the disaster occurred, OR amend the prior year tax return to claim the deduction and receive a refund. A person may have to look at the income on the 2011 tax return and compare with the 2012 income to determine which year would provide a higher benefit.
There are special rules in play when the casualty occurs in an area declared as a "disaster area" by the President of the United States. Rockland and its surrounding counties have all been declared disaster areas. Also, specific rules apply to different types of assets lost. Some example of assets are primary residences, income generating assets, scheduled and unscheduled personal property within the home, etc.
It is not always that a casualty produces a loss. In some instances, you may have a reportable gain occassioned by receiving insurance reimbursements in excess of your basis in the lost asset.
Whatever your situation may be, you have certain time limits within which to make some decisions....
During the months ahead, my office at 218 Main Street, Nanuet, is open and available to help you navigate your options. Stop by on December 5, during our Anniversary Celebrations, or give us a call on 845 512-8680.
