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How to Deal with a Casualty...

Have you ever had to deal with a CASUALTY LOSS?

Here's why I ask:

Losses incurred because of a casualty, disaster, or theft can be tax-deductible.

These losses may be limited, but they are certainly deductible.

For Example: Your tenant runs their car through the garage door

Even though you haven’t replaced the garage door, and don’t have any expenses to write off because you didn’t fix anything, you can deduct the cost of damages incurred as a casualty expense.

The loss you claim will be reduced by any reimbursements you receive (like insurance).

To claim a casualty loss, you must full out IRS Form 4684.
To learn more about how to save money and lower taxes using real estate investments, check out these resources.

Niman Singh

Posted by Niman @TReXGlobal.com on 05/21/2008 03:02 PM

Comments (6)

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6 Comments on How to Deal with a Casualty...

Wow, Niman! That's definitely a shock value picture if I ever saw one! Have a great day, Michael A. Caruso

05/21/2008 03:15 PM

by Michael Caruso Real Estate Group

Ya, you're telling me!

I'm not sure if you can make it out, but if you look closely, you'll see that it's a Ferarri on the bottom!

Definitely a casualty!

05/21/2008 03:30 PM

by Niman @TReXGlobal.com (TReXGlobal.com)

Okay, I had to subscribe to you blogs! These are TOO GOOD to pass up! Keep 'em coming.

I don't have time to read them all now, but I am working on it!! JENNIFER

05/21/2008 06:15 PM

by Jennifer Kladny Loan Officer ~ Armstrong Co, PA (1st Metropolitan Mortgage)

This blog was definately eye catching, Good Job. I cant wait to read some more of your posts!

05/21/2008 11:53 PM

by Dione Sage (Nova Home Loans)

Form 4684 is yet another one of the IRS's fiendishly complicated worksheets. The loss will either directly flow onto your schedule A, or it might flow through form 4797 onto your 1040 (depending on if it was personal property or income producing property)... but that's enough for the technical talk.

A more important matter - I have been studying that picture for quite some time now... Am I correct in believing that the truck landed on top of the Ferrari? How is the motorcycle on the left still standing?

05/22/2008 02:16 PM

by The TaxMan (Self Employed)

TaxMan,

Your guess is as good as mine. I don't know how that picture is possible. I'm just happy it's not my Ferrari!

As a matter of fact, I found a forum for this image (and others like it) where people were discussing how this could have happened.

One person was contending that the based on the damage not seen in this image (shown below), it looks like the Ferrari was at fault, and that it was actually the car that caused the accident, and that it drove into the garage at a high speed from an angle and slipped under the truck!

I got curious and did a search on google. As it turns out, the police report stated that a teenage driver reached for a cell phone, ran off the road, and became airborne. (in a 30MPH zone)

Isn't that something... I guess we should all be a little more careful where we park, and be sure to watch out for those airborne teenagers!

06/03/2008 06:33 PM

by Niman @TReXGlobal.com (TReXGlobal.com)

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What does the graphic say?