Terry Smith - The Tax Pro

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Taxes and Disaster Relief

I have recently completed a special course sponsored by the IRS Professional Tax Preparers concerning the recent disasters to strike San Diego. Shifting earth, Fire losses and Mud slides. Here is Some friendly advice for you who suffered any losses in the last year.

If your insurance company has not provided you with a check list to try and reconstruct every room in your, you can get PUBLICATION 584 from the IRS and it will give you a room by room list.

It’s fairly easy to come up with the basis for the cost of your home, along with any improvements over the years. However the hardest part is determining the value of your personal effects lost in the disaster. How much is the Hummel collection worth, baseball cards, coins, old records or collectibles? Did you ever take a video of the in side of your home?

Getting copies of past tax returns is fairly easy using the Power of Attorney (POA) Form 2848 with a Tax Preparer. The hard part is properly filling out the Form 4684-Casualties and Thefts, so that YOU get the best tax assistance.

The tax laws do allow you to go back to eprior year tax returns; however there are a lot of pros and cons as to why you really want to do that. The biggest question you must answer for yourself is, do I want the IRS to be looking into an old timely filed tax return for ANY reason? Even if you are squeaky clean you may be letting the IRS open your old return for review and now you have to spend the time to prove that you’re still right in what you claimed 3 years ago.

Please call me if you would like some assistance in this area.

Terrance Smith

3511 Camino Del Rio South #102 San Diego 92108 call 619-283-8055