With the onslaught of the harsh, not to mention unusual, winter storms hitting the south and eastern seaboard, many residents were faced with a variety of problems from property damage to area businesses and school closings. Liberty Tax® can’t offer input on the closings but we can offer advice to those who have experienced property damage.
If Old Man Winter left his mark on your possessions such as your car, your yard, and your business, you’ve experienced property damage. The light at the end of this snow-plowed tunnel is that you may qualify for tax relief when you file your taxes next year. The IRS defines a casualty loss as damage, destruction or loss of property from a sudden, unexpected or unusual event.
Because it’s hopeful that this harsh winter will be a distant memory by next tax season, you’ll want to keep the proof of the damages together. Store all of your records and receipts in a safe place (just don’t forget where). If you don’t happen to have an organizing system for your tax documents, it just so happens we can help with that as well. Check out this article: Organizing a Tax Binder.
To further assist individuals who have casualty loss, Liberty Tax® has published a Disaster Handbook (PDF), which helps individuals before and after disasters strike.
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.