Dear Clients and Friends;
We hope you and your families are safe and sound after hurricane Irma. As our neighborhoods and communities recover, we’d like to remind you of a few income tax considerations related to some of the hardships and losses you may be facing because of the storm;
• Taxpayer’s affected by Hurricane Irma will have until January 31, 2018, to file their 2016 returns.
• Damage to your personal residence and personal property is deductible as an itemized.
deduction, subject to certain limits, to the extent it is not reimbursed by insurance.
• Damage to business assets is deductible to the extent it is not reimbursed by insurance AND taxpayer’s have two years to reinvest insurance proceeds to defer any gains realized because of insurance proceeds received in excess of the adjusted basis of the business property.
• Taxpayer’s may have the option of deducting the hurricane losses on their 2016 or 2017 tax returns which would allow for the deduction to be taken in the year in which the taxpayer would get the most benefit.
• Be careful of solicitations from organizations regarding charitable donations towards hurricane relief and/or companies offering to do repair work on your property. There will be a lot of imposters out there attempting to scam you out of your money.
Please don’t hesitate to contact us with any questions you may have regarding these or any other hurricane related issues.
Davidson and Nick, CPA’s