gcollect1 wrote:

- quote -

ha! Nnnoooo... it was just meant as a typical scenario for
my area (M's meant thousands). I'd been in a coffee shop
discussion with a group, all of whom had lost all or part of
fheir property. One participant had brought up his "income"
aspect of insurance proceeds. Suposedly, his CPA gave him
that info. I didn't think that was the case but thought I'd
check here first before I checked further.

- quote -

Very true. And that's something I'm wondering about as well.
As I understand it, the loss is basically the difference in
property value (with a few adjustments) between 8/28 and the
end of 8/29. I hope the IRS will accept the "seat of the
pants" value method because there aren't enough licensed
Real Estate Appraisers in all of the southeast to figure up
all the individual losses before tax filing time. I don't
know a property owner here that didn't have damage of some
sort.

- quote -

Yep, doing away with the 10% of AGI reduction will help, as
well as being able take that loss against last year's
income, as not many folks around here HAVE any income after
8/29 this year.

Thanks for the response

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

<PhantMan[at]nospam.invalid> wrote:

- quote -

Generally, no.

- quote -

Same. Generally not includible in income.

- quote -

If those "M's" mean "million", you're definitely in need of
experienced, competent CPA or other financial/legal advice
because there are a host of issues to consider (same issues
to consider even if the numbers are only in the thousands).
You haven't even brought up the issue of casualty losses
which are very likely relevant in this scenario. Also, due
to the nature of Katrina, there is also "special" tax relief
available to victims that suffered substantial losses.
Again, you need to seek out a competent professional.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

For a structure that has washed completely away except the
slab. Owner hasn't decided whether or not to rebuild or
sell.

For year 2005, are insurance proceeds, for damages to a
personal residence, considered income?

What about for the same type damage to rental property
that's fully depreciated?

And how would you figure the gain on a personal residence
with a combination of insurance proceeds and sales proceeds
(i.e. basis $75M, Proceeds $50M, Sales price ... as is...
$35M)?

Thanks in advance for any input.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >