Author Topic: Declare Sandy Losses on Last Year's Amended Federal Tax Return  (Read 1976 times)

Meadowmucker

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Declare Sandy Losses on Last Year's Amended Federal Tax Return
« on: November 21, 2012, 08:59:18 AM »
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... Casualty losses are generally deductible in the year the casualty occurred.
However, if you have a casualty loss from a federally declared disaster that
occurred in an area warranting public or individual assistance (or both), you
can choose to treat the loss as having occurred in the year immediately
preceding the tax year in which the disaster happened, and you can deduct the
loss on your return or amended return for that preceding tax year. Theft losses
are generally deductible in the year you discover the property was stolen or
destroyed unless you have a reasonable prospect of recovery through a claim for
reimbursement. In that case, no deduction is available until the taxable year in
which it can be determined with reasonable certainty whether or not such
reimbursement will be received.

If your loss deduction is more than your income, you may have a net operating
loss. You do not have to be in business to have a net operating loss from a
casualty. For more information, refer to Publication 536, Net Operating Losses
for Individuals, Estates, and Trusts.

Advise  that you consult with your tax accountant
Regards
John