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
    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
    your business.
  • (see the slides following for details and explanations)


Inspirational Quotes

Let me embrace thee, sour adversity, for wise men say it is the wisest course

William Shakespeare, King Henry the Sixth, Part III


We are forever grateful to CARe for all the help following the Cedar Fire.

2003 Cedar Fire Survivor, San Diego CA