Today TaxMama hears from Debbie in Washington State who tells us, “We were affected by a Federally acknowledged disaster in December of 2007. The repair costs are in 2008, but I can’’t find where to claim them. What do I do?”
Sorry to hear that. I hope everything’s all better now?
IRS Publication 547 deals with disasters and casualties. It’s a long read, but explains a lot.
IRS has a set of workbooks for casualty losses. Publication 584 is for personal losses
Publication 584-B is for business-related losses, in case you had any of those.
You will report the losses on Form 4684. http://www.irs.gov/pub/irs-pdf/f4684.pdf
You can report the losses in 2007 by amending your tax return; or 2008 by reporting the losses when the amounts were finally determined.
Consider getting help for this. It’s a little complicated. The first one I ever filed got audited. It turned out really well. (Many, many years ago…) But I doubt your loss will be, since so many are filed when there are disasters like yours.
If you don’t want to, or can’t afford to hire a tax professional, check with the local IRS VITA program. They may be able to help you without any charge. They are trained volunteers.
And remember, you can find answers to all kinds of questions about casualty losses and other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Publication 547 :: Casualties, Disasters, and Thefts
- IRS Publication 584 :: Casualty, Disaster, and Theft Loss Workbook
- IRS Publication 584-B :: Business Casualty, Disaster, and Theft Loss Workbook
- IRS Form 4684 :: Casualties and Thefts