Elgin Area Chamber Of Commerce: Disasters And Your Taxes: What You Need To Know

Press release from the Elgin Area Chamber of Commerce:

September 20, 2021

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Disasters and your taxes: What you need to know Eligibility for the casualty loss deduction The role of reimbursements The loss amount vs. the deduction

• The adjusted basis of the property immediately before the loss (generally, your original cost, plus improvements and less depreciation), or
• The drop in fair market value (FMV) of the property as a result of the casualty (that is, the difference between the FMV immediately before and immediately after the casualty).

The requisite records

• That you were the owner of the property or, if you leased it, that you were contractually liable to the owner for the damage,
• The type of casualty and when it occurred,
• That the loss was a direct result of the casualty, and
• Whether a claim for reimbursement with a reasonable expectation of recovery exists.

Additional relief https://bit.ly/3nzF2ui A team effort www.tko.cpa

This press release was produced by the Elgin Area Chamber of Commerce. The views expressed here are the author’s own.