Even though Ohio is too far away to be severely struck by a hurricane, natural catastrophes do not come only in the style of cyclones. For instance, downpours can cause extreme flooding in some areas. Thankfully, the Internal Revenue Service (IRS) offers tax relief for locals of the afflicted locations.
Tax relief in areas of devastation is covered under Topic 515 of the IRS where citizens of locations declared by the federal government as disaster zones can deduct their losses. The IRS says that the quantity of the loss is the lesser of the readjusted basis of the property such as homes, family products, and automobiles, which was damaged by flood, twister, or earthquake. You may require an IRS tax attorney in Ohio to help you identify this.
Now, what defines a disaster area by legal requirements? A catastrophe area is any location or region that was ravaged by natural disasters as declared by the head of state of the United States. Usually, local officials petition the President for a declaration.
Disaster locations are generally stated countywide, so towns and cities within a particular county can be declared disaster locations. For instance, in 2007, the IRS offered catastrophe tax relief for residents of eight counties in Ohio that were declared catastrophe locations due to flooding and a twister. Target dates for filing taxes are typically pushed to a later date to offer the victims time to recover.
Just like your annual tax returns, excisions as a result of natural catastrophes need to be properly documented in your Form 1040, specifically Schedule A (Itemized Deductions). If the property partly makes it through the catastrophe, the write-off must go through appraisal by a professional service. The appraiser will furnish an exact figure on the amount of worth a broken possession has lost. However, enjoying IRS tax relief in Ohio will require a tax attorney who can walk you through the process.
If you want to learn further about tax relief during a disaster, you can check out IRS.gov. You can also browse more on related issues on Money-Zine.com.
Learn about Tax Relief, From IRS Tax Attorney in Ohio