Filing a Casualty Loss for Flood Damage

Here's a tip to get you some money back from Uncle Sam. If you had major flood damage back in 2008, you should consider amending your 2008 tax return. You are going to need three things:

A professional appraisal of what your house was worth before the flood and after the flood. I would recommend Mr. Ed Burchert, who is a professional appraiser. He can be reached at 847-253-4550. I was charged $500 for two reports (before and after).

To amend your 2008 tax return. Although you may have your own accountant do the refiling, I would recommend Richard Blonn. He is an accountant in Des Plaines and is very familiar with our flooding problems. His phone number is (847) 635-6116, and his office is located at 1644 Elk Blvd in Des Plaines. I paid $250 for the refiling.

The amount you recovered from insurance for repairs to your dwelling.

Although you can include a casualty loss on any tax return, our area was declared a disaster for 2008. This means that the amount of the loss you declare is not limited. Normally, the loss is capped at 10% of your adjusted gross income.

The cost of $750 may seem steep, but it was well worth it because the amount of the tax refund was significant. Also, the professional appraisal reports gave us an idea of the lost property value on our home due to the flooding problems.