The statements made in these blog postings do not qualify as tax advice. These statements are general comments based on general questions. Your specific facts will impact the application of the law to your situation.

The experience of a disaster property loss requires disclosure as part of the normal income tax reporting process.

The disclosure process requires the assembly of a considerable amount of information. In most cases, if the taxpayer follows the plan described in the tax code there will be no tax liability due to the compensation the taxpayer received for the loss.

“The disclosure process is so complex that the IRS has not been able to create a form for the disclosure.”

The disclosure process is so complex that the IRS has not been able to create a form for the disclosure. Most tax professionals will never have to deal with one of these situations. It is important to seek the assistance of a tax professional who has extensive experience in preparing reports of involuntary conversion. A tax professional who has extensive experience in this special area of tax law will not need to research the law and develop a form to report the involuntary conversion.

The accounting firm of John Trapani, CPA specializes in assisting taxpayers who have experienced a catastrophic event such as a fire, flood, mudslide, earthquake, hurricane or tornado.