Wildfires and Taxes Oregon 2020

in
Detroit, OR
Level 2
160 Views

Hello Community!

 

I have a complex situation and wonder if anyone has had experience such as myself with owning property in an area destroyed by a wildfire. My home was destroyed and I had rented it out for less than 30 days total but I wonder how that works with taxes as a sole proprietor using a schedule E form. Are there tax breaks and extensions for victims of wildfires? Does anyone know if a home is a total loss if that is a deductible? Totally new to the game and navigating for the first time. Any info gratefully appreciated!

 

Thank you!

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Re: Wildfires and Taxes Oregon 2020

in
Portland, OR
Level 2

Hey Wendi. I'm so sorry, what an awful thing to go through and now have to deal with the paperwork. Ugh. I saw while reading the IRS publication 527 there is a Casualties and Losses section (page 14) that says you don't report those losses on your Schedule E. It says to learn more specifically about business and nonbusiness casualty you can read IRS publication 547, and to report casualty, you figure the net gain or loss in Section B of form 4684, Casualties and Thefts. Good luck and take care.

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2 Replies

Re: Wildfires and Taxes Oregon 2020

in
Portland, OR
Level 2

Hey Wendi. I'm so sorry, what an awful thing to go through and now have to deal with the paperwork. Ugh. I saw while reading the IRS publication 527 there is a Casualties and Losses section (page 14) that says you don't report those losses on your Schedule E. It says to learn more specifically about business and nonbusiness casualty you can read IRS publication 547, and to report casualty, you figure the net gain or loss in Section B of form 4684, Casualties and Thefts. Good luck and take care.

Re: Wildfires and Taxes Oregon 2020

in
Detroit, OR
Level 2

Thank you Alyssa for your thorough response.  This is very helpful information and I will be checking into the IRS pub 547!

 

Best to you!

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