Tax Tip of the Week
900 N. Kings Highway, Cherry Hill, New Jersey 08034
856.667.4100 ·
215.563.0276 ·
Fax: 856.667.3652
Get tax relief following a natural disaster
For the week of
August 20, 2001
If you suffered damage to your home or other property from a natural disaster (flood,
tornado, hurricane, earthquake, etc.), you might find relief in the form of a quick tax refund.
As a general rule, you must deduct a casualty loss in the year it occurs. But if the loss occurs in a federal disaster
area, it can be claimed on your prior year's tax return. That means if you suffer such a loss this year, you can
amend your 2000 return to get much-needed cash now instead of waiting to deduct the loss on your 2001 return.
You can write off personal casualty losses as an itemized deduction, subject to certain limitations. Business casualty
losses are fully deductible, and you don't need to itemize your deductions to get the tax benefit.
Since the amount of your tax refund depends upon your tax bracket, the refund could be larger for one year than
the other. However, getting the cash in your hands now may be more important than waiting for a larger refund.
If you've suffered a casualty this year, please give us a call to discuss
what's best in your situation. We can also assist you in preparing your amended return to get relief on its way.
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tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
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to receive other tax-cutting information from time to time, please contact our office. We're here to help.
