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Tax Planning for an ICE Storm?

If we get the BIG ice storm that is expected to hit Indy, many of us will suffer damage to our homes, businesses and vehicles.  The tax law allows us to claim a deduction for a “casualty loss,” as long as certain requirements are met.  As you might expect, the requirements are complex, but basically you are entitled to a tax deduction for the amount the value of your property was reduced as a consequence of storm damage or if less, the “adjusted tax basis” of the damaged property.  Individual taxpayers are also subject to a special rule that only allows a tax benefit from a casualty loss if the loss exceeds 10 percent of their “adjusted gross income.”  What should you do today about this?  Keep records of any losses, including pictures of damage to homes, landscaping and other property, as well as out of pocket costs to clean up storm damage. 

Sometimes, the costs to repair damages to homes and landscaping, less any insurance reimbursements, will satisfy the IRS requirements.

To learn more about Keith A. Bice and his practice, visit his profile.

  • Partner

    Keith Bice serves as a Partnership Board Member, focusing his practice on business and real estate debt, equity and acquisition deals. In his role as co-chair, Keith leads the group's attorneys in continually anticipating the needs ...

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