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Casualty Loss Recoveries

Published on Nov 18, 2015

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PRESENTATION OUTLINE

1.

Casualty Loss Recoveries

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2.

Superstorm Sandy Loss Was 2012
*

Grant Money Was Received In 2014

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3.

Recoveries
Fall Under The
Tax Benefit Rule

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4.

Don't Deduct A Loss

Where You Expect A Recovery
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5.

Types of Recoveries

  • Insurance Claim
  • Lawsuit
  • Government Grant
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6.

Recoveries Of
Deductions
Are Income When
Received

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7.

IRS Pub 547 For Casualties
*
IRS Pub 525 For
Recoveries

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8.

Example

  • Sandy Loss Incurred In 2012
  • Loss Deducted In 2012
  • NY Rising Grant Received In 2014
  • Income Taxed In 2014
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9.

Summary

  • Don't Deduct If Recovery Is Possible
  • If Recovery Exceeds Deduction You Have Income
  • Do Not Amend Year Of Loss
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10.

Chris Farrell, CPA
Chris@Goldcocpa.com
@GoldsteinandCo

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