ighter7[at]ev1net.net wrote:

- quote -

Casualty loss. To the extent repairs aren't covered by
insurance, your loss (less a 10%-of-AGI haircut and a $100
deductible) is an itemized deduction. Publication 547
describes how to handle a casualty loss on your taxes.

- quote -

IRA withdrawals (assuming this is the traditional IRA for
which you took an adjustment to income when you contributed)
are ordinary income. They aren't tax-free, even if they're
used for medical expenses.

If this is your only taxable income, you might owe no tax
anyway (especially if you get the extra personal exemptions
for over 65). And even if it pushes you into the first tax
bracket, the itemized deduction for medical expenses should
get you back under the limit.

I'm guessing that because you're drawing Social Security,
you're not under 59-1/2, so you avoid the 10% premature
withdrawal tax.

--
Chris Green

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<eighter7[at]ev1net.net> wrote:

- quote -

You could well have a deductible casualty loss. See IRS
Publication 547 and http://www.irs.gov/taxtopics/tc507.html

If the president declared your county as a disater area
eligible for federal benefits, you can choose to use that
casualty loss against 2003 instead of 2004.

- quote -

If you take a distribution from an IRA and don't replace i
right away, the taxable portion of that distribution is
subject to income tax.

So the issue is how much is subjectr to te additional10% tax
for taking the distribution before age 59 1/2.

You can exclude the amount of distribution that exceeds your
allowable medical/dental expenses, reduced by 7.5% of
adjusted gross income, from the 10% early distribution tax
by filing Form 5329.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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eighter7[at]ev1net.net wrote:

- quote -

See "Casualty Loss" in the IRS forms and instructions.

Assuming, which is not clear, a series of storms can be
considered a SINGLE casulaty for the purpose of tax laws....

If for personal use, the loss (not necessarily measured
by repair costs) is deductible as an itemized deduction
after reducing it by $100 per incident and 10% of AGI
(Adjusted Gross Income).

If for business use, the loss is deductible.

The "loss" is, I believe, the lesser of the basis of
the property and the reduction in value caused by the
casulalty.

- quote -

Possibly, in a sense. The 15k is taxable as gross income,
and may make part of your Social Security income taxable.

I don't know how much SS income you have, but if your
total non-SS income, including the withdrawals and
tax exempt income, plus half of your SS income income,
exceeds $32,000, some may be taxable.

If you are both over 65, then you may not need to file,
and do not owe income taxes, if your taxable income is
less than $17,800. Even if you're not over 65, you
do not owe income taxes if your taxable income is
less than $15,900.

If you are not both over 59-1/2, you may also need
to consider whether you owe the early distribution
tax. The withdrawals, to the extent of the number
you would place on Schedule A line 4 if you itemized
deductions (total medical expenses, including Medicare
part B premiums, less 7.5% of Adjusted Gross Income)
is exempt from the penalty.

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<eighter7[at]ev1net.net> wrote

- quote -

Possibly as a disaster/casualty loss. See Publication 547.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Can anyone tell me if any damages done by torrential rains
are dedutable; dameges would be like rural driveways of
considerable length washed out, and home needs to be leveled
and stablized from settling.

Next question is on IRAs and health expenses. Say I have a
dental bill of $15,000 for corrective replacment bridges,
crowns, etc and I cash one for 10k and my husband cashes 5k
and the other income we have is SS, will we owe taxes on the
15k

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