In recent years, the IRS has recently extended deadlines for filing returns and paying taxes for taxpayers affected by recent natural disasters. This includes people who live in some counties in North Carolina and South Carolina, among others. This extension has brought much-needed tax relief for people greatly affected by these areas. However, taxpayers should take action in other things after a disaster has hit their area. Here are three of those important things they should be doing.
Reconstructing your Financial Records
Many Americans hit by natural disasters are facing this insurmountable challenge. But this is extremely vital in properly documenting things like a tax-deductible loss. When the loss is accurately estimated, the amount of grant and loan money becomes more accessible. Another vital record to obtain is a return transcript. You could get free return transcripts by visiting the “Get Transcript Tool” on the IRS website.
Obtain your Home or Real Estate records
In addition to your tax records, if you owned a home or other real estate, it is vital to obtain records for that. After a natural disaster hits your home, be sure to take pictures of it in order to show the extent of the damage. Contact the bank or another financial institution responsible of handling the purchase of the home to get copies of documentation. Obtaining information from your mortgage company could help in establishing a fair market value of your home.
Records of your Personal Property
In recovering from a natural disaster, you must obtain records of your personal items. When trying to find out the fair market value of your lost items, it’s important to utilize resources. Search different websites in finding out the fair market value of each item. Be sure to collect evidence of the item’s value from receipts and canceled checks.
Recovering your records is a challenge, but it’s very important to do this after a natural disaster strikes your home. For more information on natural disaster and emergency relief, be sure to contact us for assistance.