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Tax Deduction Consulting: Fire Loss Deductions Lewiston ME

One of the important keys to success in tax preparation is the keeping of adequate records. The person who is very careful and keeps very good records of his property, its value, and his expenses is going to find tax preparation time much easier. He will also be more prepared for a possible audit and will have less difficulty should one occur. However, what if losing your records is the problem?

Michael John DellOlio (RFC®), JD, MBA
(207) 294-0401
16 Middle Street
Saco, ME
Company
Michael J. DellOlio & Associates, L.L.C.
Qualifications
Education: B.S.,MBA,J.D.,NASD Series 6,7,24,63,65; Maine Insurance License
Years of Experience: 24
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, BuySell, Compensation Plans

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H & R Block
(207) 773-0221
252 Saint John St
Portland, ME
 
David Thomas & Assoc
(207) 871-0123
477 Congress St Ste 1005
Portland, ME
 
H & R Block
(207) 775-1972
400 Maine Mall Rd
Portland, ME
 
Hutnak Stephen A LLC
(207) 772-1600
100 Middle St Ste 401
Portland, ME
 
Brown Barry J
(207) 879-7000
22 Free St Ste 301
Portland, ME
 
Jackson Hewitt
(207) 899-1540
34 Atlantic Pl
Portland, ME
 
Johnson Virginia M
(207) 772-2322
686 Brighton Ave
Portland, ME
 
H&R Block
(207) 860-8390
10 DEPOT ST
LIVERMORE FALLS, ME

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Liberty Tax Service
(207) 828-4829
694 Forest Ave
Portland, ME
 
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Tax Deduction Consulting: Fire Loss Deductions

Proving Deductions for Fire Loss

Whenever you are discussing the idea of proving deductions during an audit, the first thing you are told is to keep very good records. What happens when the lost of those records is the problem? How difficult is proving deductions for fire loss?

One of the important keys to success in tax preparation is the keeping of adequate records. The person who is very careful and keeps very good records of his property, its value, and his expenses is going to find tax preparation time much easier. He will also be more prepared for a possible audit and will have less difficulty should one occur. However, what if losing your records is the problem? This could happen as the result of a disaster such as a house fire. How difficult is proving deductions for fire loss?

The IRS has a reputation of being a bit more understanding over recreated records and even estimates when the loss of the original records is the result of a disaster such as a fire rather than carelessness. You will have a little more laxity in establishing estimates of your property and its value. So, the first thing to do is to establish that a disaster occurred. It is not a person's first instinct after losing their home to a fire to start taking pictures of the disaster, but since documentation of loss is going to be important both for insurance and tax purposes; this is the right thing to do.

You are going to be able to get away with estimating the loss of what would normally be found in a home. It is when you claim that your priceless collection of rare baseball cards or Van Gogh paintings went up in smoke that you are going to be challenged. It is possible to recover some proof of these unusual items and their value from other sources such as copies of credit card statements. As with many other deductions, the best thing you can do is claim what you think is correct and fair and hope for the best. Begin the process of documentation immediately.

If you have lost your important records as a result of a fire, this advice might seem a bit like telling you to close the barn door after the cows have already escaped, but a fireproof safe for your important documents should be something everyone has in their home. They are inexpensive and everyone has records and valuable papers that should be protected from loss. This is good advice not only for the taxpayer, but also a fireproof safe can protect vital records needed for insurance claims. They can even protec...

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