"David Woods, EA, ChFC, CLU" <dwoods[at]woods-financial.com> wrote:

- quote -

Being in the heart of last year's hurricane season (central
Florida) everyone is coming in looking for huge hurricane
deductions.... when they find out there really is not one
they are pretty disappointed.

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mytax[at]adams.net wrote:

- quote -

But can mold damage be sudden? As a resident of Richmond on
the James for several decades I think not. And mold does not
qualify as a casualty.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Yes that is sudden enough, in my book.
Yes you may amend your 2003 tax return,
form 1040X. This may be downloaded from:
irs.gov

We had a lot of taxpayers that had losses in the flood of
the Mississippi River in 1993. Lots of people lost
everything.

Missy Doyle

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David Woods, EA, ChFC, CLU wrote:
- quote -

Thanks to everyone on this thread.

I don't quite understand about the year though. I was not
clear on my previous enquiry. I meant, "I wonder if we could
ammend our 2003 return and claim the loss for that year, the
year it happened?" Is it too late now? I thought we had
three years. The mold damage did happen relatively quick, I
believe, within about two weeks. Is that sudden enough?

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"Bill" <an_ordinary_guy_158[at]hotmail.com> wrote:
- quote -

I've had it TWICE in eight years.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"fermat" <damscot9[at]aol.com> wrote:

- quote -

You cannot deduct a 2003 loss on your 2004 return.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"fermat" <damscot9[at]aol.com> wrote:

- quote -

If it qualifies as a casualty loss, it has to be deducted in
2003, not 2004.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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damscot9[at]aol.com (fermat) wrote:

- quote -

_Progressive deterioration_ is a specific category of
casualty loss which is cited in Pub 17 as an example of
_Nondeductible losses. See Chapter 27, Page 178, 2004 Pub
17.

Aside from that, I've yet to find anyone who -- in the end,
after insurance partial-reimbursement and the 10% rule (Your
total net Casualty Loss must exceed 10% of AGI) -- met the
requirements for actually deducting something. That doesn't
mean it hasn't happened: It's just that in 14 years of
volunteer tax-prep, I've tried for a lot of deductions for
hail-damage, hurricane damage, etc., and _never_, not once,
have I been able to make an entry in that section of
Schedule A.

Bill

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The damage has to be sudden and this does not sound like it
is sudden.

Missy Doyle

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Hello experts

We had extensive mold damage in 2003, but did not file a
claim because our HO policy explicitly exlcudes coverage for
mold damage. We paid contractors about $15k for necessary
repairs in 2004. We thought this loss would not qualify by
IRS rules since we failed to file an insurance claim, so we
did not deduct it for 2003. But, after rethinking our
situation, we are not sure where we stand. We now we wish to
claim a casualty loss for this on our 2004 IRS return, if
justified. What is your opinion?

Thanks

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