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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
    home
    .
  • You have 2 years if you lost real
    property that you used as rental or in
    your business.
  • (see the slides following for details and explanations)

 

Inspirational Quotes

You can't run away from trouble. There ain't no place that far.

Uncle Remus

Testimonials

My husband and I wanted to let you know how helpful you and were after the loss of our home in the Waldo Canyon Fire last year. As you no doubt have already heard; Colorado Springs has been hit with another wildfire, the Black Forest Wildfire. We would like to ask you to please come out and help those affected this year. We know how valuable your knowledge in this area is.

Waldo Canyon Fire Survivor, 2012