On your taxes, you can claim moneys expended on the repair or replacement of your property due to casualty or loss but discuss with your tax preparer what the IRS definition of casualty or loss. There is so much talk in the news of worldwide storms and bad weather and daily we hear of property damage and loss. You can take all the necessary precautions to protect your extremely valuable and precious investment (your homes). Good preparation is critical to survival. Long before we listen to the weather reports, we can fortify the exterior of our buildings. Do all that you can do to be storm ready – fix that leaky roof, fasten or replace dangling downspouts, flapping shingles and windows, clean gutters and trim overhanging branches and remove diseased and rotting trees. As turbulent weather approaches, however, heed the advice of the authorities and experts. But when the dust settles, the water subsides and you have surveyed your property, what’s next? Let’s hope that no damage was sustained. If it did, however, keep good records of all moneys expended to repair your property. Retaining receipts is absolutely critical. Not all moneys spent on repairs and be claimed on your taxes. If you were reimbursed by insurers, government agencies or given grants, those amounts cannot be claimed as a deduction. So have the conversation with you tax preparer today!
