I was pondering the three year deadline and remembering that after our fire in '03 there were some tax deadlines that came up at the three year mark. I went looking for them and found this in our Disaster Tax Issues handout which can be found in the "Tax Handout" section of our website. The first thing I found had to do with Property Taxes (page 12, slide 66):
- Property tax basis can be transferred to
another property if you purchase your
new property within the same county.
If the purchase price is greater than
120% of the market value of your
destroyed home, your property tax base
will be increased by the amount in
excess of 120%.
- You have a three year period in which to
do this. There is no time limitation if you
rebuild your home on your vacant lot.
There are a lot of rules and calculations involved with determining whether or not you have to pay taxes on all or part of your insurance claim, so you need to take the handout to your CPA as soon as possible, but if you do have a gain and you want to reinvest the gain as opposed to paying taxes on it (page 7, slide 35):
- You have 4 years from the end of the
year in which you receive one more
dollar from your insurance company
than your tax basis in your home and
scheduled personal property.
- You have 2 years if you lost your second
- You have 2 years if you lost real
property that you used as rental or in
- (see the slides following for details and explanations)