Helpful Tax Information for People in Disaster-Affected Areas
Hurricane Ian struck the United States recently and caused widespread damage in the southeast. Therefore, it is beneficial to be familiar with the broad tax regulations that pertain to those who have suffered a natural disaster. In the following sections, we will examine many tax issues that may arise for those who have experienced a natural disaster.
It is best to hire help from an expert accountant in Sanford, FL.
(1) Tax Forms and Submissions
The natural calamity forced me to evacuate my home. Thus, I have a question about relocation. I may not be back for a very long time, if at all. In which case should I list my address on my tax return?
When filing taxes, a taxpayer must always mention their current address. If you change addresses after submitting your return, you must notify the Internal Revenue Service. The IRS Disaster Hotline can be reached at 866-562-5227, or form 8822 can be submitted online.
To answer your question, I have filed for an extension on Form 1040 and have until October 15 to submit your taxes. What are the potential additional extension options?
As a result of the recent hurricanes, the federal government has extended the deadline for filing tax returns until December 31 for residents in areas labeled disaster zones.
Transactions 2: Cash in Hand
My 2021 tax return still has a balance due, and interest has started to accrue. Can they get a break on their interest payments if they’ve been affected by a disaster?
Answer: No, the IRS is not waiving penalties or canceling interest on tax debts. However, if a taxpayer can show that their payment delay is due to disaster-related concerns, the IRS will waive any late payment penalties that may otherwise apply.
The Third Type of Financial Setback Is Due to Damage to Personal Property or Resulting Accidents
All the food in my refrigerators and freezers went bad after the power went out during the latest crisis. In this case, the amount I received from my homeowners’ insurance far exceeded the original bill. Where do I stand on declaring this surplus?
A: No. Scheduled property is treated differently from general payments by the tax code. In the case of nonscheduled property (general reimbursements), the taxpayer is exempt from reporting any profit from the receipt of any amount greater than the cost of the lost property.
Question: I’m looking for assistance establishing my house’s fair market value (FMV). Could I use my property tax assessment as proof of my home’s fair market value?
An appraisal by a qualified appraiser or the cost-to-repair approach is the only two ways a taxpayer can determine a property’s fair market value (FMV).