Re: Re: Taxes and Mold and WC

[Guest guest]

,

Didn't you post somthing about this a while ago?  If I recall you don't do

replacement value but what its worth at a gorage sale.  You also have to do it

all in one shot. In one years taxes.

a

From: reb_black <reb_black@...>

Subject: [] Re: Taxes and Mold and WC

Date: Monday, July 28, 2008, 4:52 PM

[Guest guest]

Here is some information I posted several months ago.  There is a lot of

information on the IRS website about " casualty losses. "

http://www.irs.gov/businesses/small/article/0,,id=171138,00.html

(6/1/07)  Q: How will the IRS will handle water damage " mold issues " as a result

of insufficient repairs or whatever the cause. Will there be special reporting

on the loss related to mold?

 

A: Whether individuals may claim damage to their personal-use property from mold

as part of a casualty loss depends on the facts and circumstances of each

situation.  A key factor to consider is whether the mold damage occurred as a

direct result of the disaster  or from some other intervening cause since there

must be a causal connection between the casualty event and the loss claimed by

the taxpayer.  For example, individuals would not be entitled to deduct as part

of their casualty loss mold damage that occurred as a result of insufficient

repairs.  The individuals¢ casualty loss deduction would be limited to the

property damage caused by the disaster.  In addition, if a large amount of time

lapsed between the date of the hurricanes and the formation of the mold, this

raises the question of whether the mold damage was caused by the disaster or by

some other factor.

The formation of mold may qualify as a separate casualty.  A casualty is an

event that is identifiable, damaging to property, and sudden, unexpected, and

unusual in nature.  An event is sudden if it is swift and precipitous, and not

gradual or due to progressive deterioration of property through a steadily

operating cause.  An event is unexpected if it is unanticipated and it occurs

without the intent of the one who suffers the loss.  An event is unusual if it

is extraordinary and nonrecurring, one that does not commonly occur during the

activity in which the taxpayer was engaged when the destruction or damage

occurred and one that does not commonly occur in the ordinary course of

day-to-day living of the taxpayer.  If, under a particular set of facts, the

formation of mold is a sudden, unexpected, unusual and identifiable event that

caused damage to the individual¢s property, then it would qualify as a casualty

and the individual may be entitled

to deduct the loss for the resulting property damage as a casualty loss under

section 165©(3) if the individual satisfies the other requirements for the

deduction.

[Guest guest]

It appears that only homeowners who itemize could deduct the value of

their lost belongings,

what about renters? What if you are sick and the value of the

belongings is (much) more than that one years income?

[Guest guest]

I wanted to offer a couple things to help those who are dealing with casualty

losses.  I am not giving tax advice, and you would need to consult with a tax

expert for more specific help.  If you go to the IRS website (www..irs.gov) and

go to Publication 547 and Publication 584, you can get lots of information about

casualty losses and how to calculate the loss.  I don't think you have to own a

home to be able to calculate a casualty loss.  Some of the examples in

Publication 547, discuss only losses of personal items (such as a car or a

diamond ring).  It does appear that you have to file Schedule A to be able to

claim a casualty loss (Schedule A is for itemized deductions).  As someone else

mentioned, you only get to deduct the Fair Market Value of the items (you don't

get to deduct the Replacement Cost).  Hope this helps.

Re: [] Re: Taxes and Mold and WC

It appears that only homeowners who itemize could deduct the value of

their lost belongings,

what about renters? What if you are sick and the value of the

belongings is (much) more than that one years income?

[Guest guest]

The problem for many people is that when they become unable to work,

they don't have an income and start living off whatever savings they

have. So, even though the government seems to be involved in the cover

up, they can't get any tax relief, because they are living off of

income they made in the past. They don't have any income, so they

can't file for tax relief..

On Wed, Jul 30, 2008 at 7:30 PM, <brianc8452@...> wrote:

> I wanted to offer a couple things to help those who are dealing with

> casualty losses. I am not giving tax advice, and you would need to consult

> with a tax expert for more specific help. If you go to the IRS website

> (www..irs.gov) and go to Publication 547 and Publication 584, you can get

> lots of information about casualty losses and how to calculate the loss. I

> don't think you have to own a home to be able to calculate a casualty loss.

> Some of the examples in Publication 547, discuss only losses of personal

> items (such as a car or a diamond ring). It does appear that you have to

> file Schedule A to be able to claim a casualty loss (Schedule A is for

> itemized deductions). As someone else mentioned, you only get to deduct the

> Fair Market Value of the items (you don't get to deduct the Replacement

> Cost). Hope this helps.

>

> Re: [] Re: Taxes and Mold and WC

>

> It appears that only homeowners who itemize could deduct the value of

> their lost belongings,

>

> what about renters? What if you are sick and the value of the

> belongings is (much) more than that one years income?

>

>