The IRS allows for deductions on income tax returns for damage to residential property caused by subsoil shrinkage in excess of $100 that has not been compensated by insurance. To prove the damage, a professional soil engineering opinion is recommended. The amount of damage can be determined by the difference in fair market value before and after the damage, with a professional appraisal being the best evidence. If repairs are not made until the following year, the loss can still be deducted in the year it occurred. Casualty losses under $100, losses compensated by insurance, damage to trees, bushes, or landscaping are not deductible unless caused by rapid, severe, and unusual subsoil shrinkage. The taxpayer must file an amended return if necessary.

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Deducting Drought Damage from 1980 Income Tax Returns: Guidelines on Proving Subsoil Shrinkage and Estimating Property Damage

Identifier:
CAC_CC_109_4_22_2_0014
Contributing Institution:
Carl Albert Congressional Research and Studies Center, University of Oklahoma, Norman, OK
Title:
Deducting Drought Damage from 1980 Income Tax Returns: Guidelines on Proving Subsoil Shrinkage and Estimating Property Damage
Date Created:
1981-01-01
EDTF:
1981-01-01
Creator:
unknown
Rights:
http://rightsstatements.org/vocab/NKC/1.0/
Language:
eng
Record Type:
correspondence
Collection:
James R. Jones Collection
Collection Finding Aid:
https://arc.libraryhost.com/repositories/3/resources/70
Description:
The IRS allows for deductions on income tax returns for damage to residential property caused by subsoil shrinkage in excess of $100 that has not been compensated by insurance. To prove the damage, a professional soil engineering opinion is recommended. The amount of damage can be determined by the difference in fair market value before and after the damage, with a professional appraisal being the best evidence. If repairs are not made until the following year, the loss can still be deducted in the year it occurred. Casualty losses under $100, losses compensated by insurance, damage to trees, bushes, or landscaping are not deductible unless caused by rapid, severe, and unusual subsoil shrinkage. The taxpayer must file an amended return if necessary.
Topic:
Education--United States
Congress:
97th (1981-1983)
Physical Location:
CAC_CC_109_4_0000, Box 22, Folder 2, University of Oklahoma, Carl Albert Center Archives, Norman, OK, Standard Shelving
Location Represented:
Oklahoma (state), United States (nation)
Type:
Text
Extent:
2 Pages