FEMA is closed due to weather conditions in parts of the Sandy ravaged Northeast. Snow now covers the garbage in the streets as well as the rank odors and, unfortunately, hides items people must avoid stepping on. Look closer for yellow snow. Power restored in some areas is off again. Looting for survival has become more common. What happens after help comes?
Market Watch: “When you have insurance coverage for disaster-related property damage — under a homeowners, renters, or business policy — you might actually have a taxable gain instead of a deductible casualty loss. Why? Because if the insurance proceeds exceed the tax basis of the damaged or destroyed property (normally equal to its cost), you have a taxable profit as far as the IRS is concerned. This is the case even if the insurance company doesn’t fully compensate you for the pre-casualty value of the property. These gains are called involuntary conversion gains — because the casualty event causes your property to suddenly be converted into cash from the insurance proceeds.”
Taxmaggedon is engulfing America.
.
.
Follow
.
Posted on November 8, 2012
0