This happened a number of years ago, in the early days of my business, and it was the first time I had to deal with a situation that kept me up at night. But after much research and discussion with other tax pros, I felt comfortable with the way we reported the loss.
A casualty and theft loss is a deduction allowed on tax returns for people who suffer property damage or theft.
How to deduct flood damage and other storm damage from your tax return.
Are insurance deductibles tax deductible? Maybe.
It’s the heat of tax season, plus Jason is working on finishing a manuscript for an upcoming continuing education seminar he is presenting at. Rather than make you wait for new posts, Jason has dug into the archives to pull out some of his personal favorites from days gone by. This story comes from October, […]
A taxpayer’s attempt at claiming a casualty deduction more than $40,000 based on self-created estimates and an error-filled appraisal was rejected in Tax Court yesterday. The case shows the importance of proper documentation and valuation of the property. The taxpayer is an accountant in Indiana. His home and surrounding lot was damaged by a tornado, […]
One pleasant afternoon recently, my wife looked outside and noticed that one of the mums we had planted was lying in the middle of the lawn. On further investigation, we discovered that someone had dug out two of our mums. The thief ran off with one and left the other one in our yard. The […]
A man lost a case in Tax Court today (Wednesday) involving a debt allegedly owed to the taxpayer by actor John Ratzenberger (Cliff Claven in “Cheers”). The man, a Mr. Alioto, was in the transportation industry. In 2000, Mr. Alioto asked Ratzenberger to speak at a convention. From the Court ruling: While Mr. Alioto was having dinner with Mr. Ratzenberger and […]
The IRS has published advice on how to safeguard tax records from natural disasters. From the news release: Create a Backup Set of Records Electronically Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set. Keeping a backup set of records –– including, […]
(EDITOR’S NOTE: This article was originally published on August 12, 2010, during a string of rainy summer days that were causing flooding. Over the last few weeks, I have noticed a lot of people looking at this article, so I am bringing this article back to the top of the blog.) If you live in Iowa, you […]