For those hit by natural disasters in 2012, IRS can help

http://lifeinc.today.com/_news/2013/03/15/17298652-for-those-hit-by-natural-disasters-in-2012-irs-can-help

by Cynthia Ramnarace

Residents in areas that suffered through one of the 10 federally declared disaster areas in 2012 can deduct the value of their lost property on their tax returns.

For this reason, the 177,000 people in the Sandy corridor and some 64,000 other storm victims might actually be looking forward to dealing with the Internal Revenue Service this tax season. But get ready, because like all things storm-related, there's going to be lots of paperwork - and tissues - involved.

"It's so emotional," says Judy Strauss, an enrolled agent (IRS-licensed preparer) in Cobleskill, N.Y. "But people just have to take a deep breath and do it. I tell people to keep a piece of paper by the bed. Every time you wake up in the middle of the night and remember something else you've lost, write it down."

Timing your return
If you were in a declared federal disaster area, you can file an amended return for the 2011 tax year and tuck your Sandy losses into that, or you can simply claim them on your 2012 return. (You can find a complete list of the qualifying storms and areas at the FEMA website.)

-----