Hurricane damages as casuakties loss in form 4684


M

miamicuse

I am in south Florida and was impacted by hurricanes Katrina
and Wilma. Form 4684 allows for deduction of causualty
losses due to damages from these storms. I have a few
questions.

(1) I have substantial roof tile damages, but unfortunately
came under the insurance deductable so I have to pay for the
repair. Meanwhile five months after the storm and I am
still unable to get a roofer to come and repair it. Reason
being no roofer is available for repair (they are too busy
doing a brand new roofs) and since I have roof tiles they
are back ordered for one year anyways. So I don't know the
exact amount to deduct.

(2) It says I can deduct losses from landscape. I lost a
large tree and a few small ones. But what are their values?
Is their value the fee I paid for someone to come cut them
down and haul them away? I paid over a thousand dollars for
the tree removal but that is not what I "lost" right?

(3) How would I even begin to itemize things like lost of
all food in the refrigerator because I had no power for
weeks, or the tree limbs came down and dented the side door
of my car?

(4) On the form it asked what is the fair market value
before and after the loss. Now if I had a working rain
gutter before the storm, and after the storm it is laying on
the ground all torned up, how do I determine the after loss
value? Is it zero? I would think it is zero? or do they
assume building materials have resale value?

How would I determine these values if I made estimates? I
don't have any receipts of a tree I bought ten years ago
from the nusery. For example, one of them was a crape
myrtle that cost $500 back then...how much would it be now
had it not been chewed up by Wilma?

I am scratching my head here with this form, any help or
advise would be greatly appreciated.

Thanks,

MC
 
Last edited by a moderator:
Ad

Advertisements

W

William Brenner

miamicuse said:
I am in south Florida and was impacted by hurricanes Katrina
and Wilma. Form 4684 allows for deduction of causualty
losses due to damages from these storms. I have a few
questions.

(1) I have substantial roof tile damages, but unfortunately
came under the insurance deductable so I have to pay for the
repair. Meanwhile five months after the storm and I am
still unable to get a roofer to come and repair it. Reason
being no roofer is available for repair (they are too busy
doing a brand new roofs) and since I have roof tiles they
are back ordered for one year anyways. So I don't know the
exact amount to deduct.

(2) It says I can deduct losses from landscape. I lost a
large tree and a few small ones. But what are their values?
Is their value the fee I paid for someone to come cut them
down and haul them away? I paid over a thousand dollars for
the tree removal but that is not what I "lost" right?

(3) How would I even begin to itemize things like lost of
all food in the refrigerator because I had no power for
weeks, or the tree limbs came down and dented the side door
of my car?

(4) On the form it asked what is the fair market value
before and after the loss. Now if I had a working rain
gutter before the storm, and after the storm it is laying on
the ground all torned up, how do I determine the after loss
value? Is it zero? I would think it is zero? or do they
assume building materials have resale value?

How would I determine these values if I made estimates? I
don't have any receipts of a tree I bought ten years ago
from the nusery. For example, one of them was a crape
myrtle that cost $500 back then...how much would it be now
had it not been chewed up by Wilma?

I am scratching my head here with this form, any help or
advise would be greatly appreciated.
I shall let the professionals answer your specific queries.

I can help in one area. The best you can do is to estimate
-- via a wild guess -- the cost of lost food. As they did
with Andrew, IRS will most likely accept a reasonable
figure. Let us hope that they will again do so. On the
other hand, they might look askance at an unsubstantiated
claim for a freezer full of lobster, shrimp and steaks. <g>

The following, from IRS.gov, indicates that you need not
include your losses on the 2005 return due April 17. You can
amend it (or your 2004 return) at a later date when you have
more information as to your losses.

"There is a special rule that applies to deductible losses
on property located in a Presidentially-declared disaster
area. Under this rule, you can choose to claim your losses
on your 2004 return or claim them on your 2005 return.
Taxpayers with hurricane-related losses have until October
16, 2006, to make this choice. See Notice 2006-17 for more
information."
 
Last edited by a moderator:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top