Editor’s Note: This story has been revised from an earlier version to identify Scott Lemoine as an accountant, not an attorney. Daily Report regrets the error.
Amidst all the headaches associated with the recent flood, there is a bit of potentially good news for flood victims: The Internal Revenue Service will allow you to amend your 2015 tax return to deduct any personal and business losses incurred in the flood, and refunds could be forthcoming as soon as October, according to a local tax accountant.
Scott Lemoine, an accountant with Lemoine, Triche & Associates, says with all the other announcements related to disaster assistance floating around, he’s concerned flood victims may not be aware of the IRS regulations and may not be poised to take advantage of them.
“We’re just trying to get the word out there because people have to get the ball rolling now,” Lemoine says. “Once the trash companies come and pick up everything it will be that much harder to remember everything that was lost.” It’s important for people to try to tabulate the exact value of lost contents while some of those contents are still on the curb, he says.
Under the IRS rules related to federal disaster areas:
- The amount of the loss that can be deducted is limited to the decrease in value of your property, structure and contents, as a result of the flood. The IRS will consider the cost of repairs for the calculation of the loss.
- The casualty loss deductions can be taken for both personal and business property.
- The personal casualty loss deductions should consist of the taxpayer’s residence and all contents lost or damaged from the flood.
- The business casualty loss consists of damage to real estate, equipment and fixtures.
- The losses can be reported on amended 2015 returns. Taxpayers should put the disaster designation “Louisiana, Severe Storms and Flooding” at the top of the form so the IRS can expedite the processing of the refund.
“If someone has all that information and files an amended return by next week, they could get a refund as soon as October,” Lemoine says. “That could really be a big help for a lot of people right now.”
—Stephanie Riegel
