News & Advice From One of America’s Leading Disaster Recovery Specialists

Disaster recovery is a complicated matter. The IRS realizes this and has recently posted information in a Frequently Asked Questions format, addressing some thorny issues related to disaster casualty losses.

You can read these FAQs on our Disaster Recovery blog.

For a quick overview, the topics covered include:

• Casualty loss valuations

• Reporting of casualty losses on Form 4684 using the cost of repairs method

• Decrease in fair market value immediately after a loss

• Loss to several parcels of real estate

• Special assessment on condo/co-op owners

• Loss from damaged trees and other landscaping

• Casualty loss deductions and insurance proceeds

• Mold issues

• Business losses

• IRS-issued guidance for reporting losses

• Identifying the federally-declared disaster

• Flat amount for food losses

• Property tax statements to establish FMV

• Potential gains after a loss