If you're the victim of a major disaster, you might be entitled to government relief. But you will need records to help you prove disaster-related losses for tax purposes, federal assistance and insurance reimbursement.
Unfortunately, records may have been destroyed in the disaster. Here's what you should do:
How do you figure your loss on business or income-producing property? This gets a little more complicated. You need to know the lesser of the property's adjusted tax basis immediately before the loss or the property's decline in fair market value due to the casualty. Compare the two figures and deduct the lower one, minus insurance or other reimbursement.
Follow these other property loss tips:
If you have questions about a tax issue, need help preparing your tax return or want to download free publications, forms or instructions, let us know.
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