BulldogTom Posted January 18, 2023 Report Share Posted January 18, 2023 I have a number of clients in the flooded areas of CA. I have not had much exposure to disaster areas in my career. Are there any tips that you would like to share if you have had experience with clients affected by a major disaster? I just want to be prepared for any help I can provide to make the tax prep part of their lives as smooth as possible as they deal with more important things in their lives. Thanks in advance. Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted January 18, 2023 Report Share Posted January 18, 2023 Likely the same as anywhere (and really, the same for any client.friend/family member). Advice on preparation for any disaster/incapacity is likely all you can help with, recovery is something they will have to do. Maybe share any extensions they are eligible for, so they may worry less, but I suspect their returns are not a pressing worry (unless an employer). Unless someone pays for things you need to know about in cash, they will have access to records... and if they do pay in cash, that is a discussion for a later time (not only record keeping issues, they are giving away rewards/points from charge cards). I could go on a long time on this topis., We live in a flood and quake area. We are above the flood line, and our home survived the last big one well, but power and communication can be an issue after the event begins. Quote Link to comment Share on other sites More sharing options...
TexTaxToo Posted January 19, 2023 Report Share Posted January 19, 2023 You probably know that if they have a deductible loss, it can be taken in the prior year (so losses in 2023 can be claimed on the 2022 return). The CAA2023 passed in late December makes permanent the usual retirement plan provisions for disaster distributions, and applies to all disasters after 1/26/2021. That is, someone living in a major disaster area who has an economic loss due to the disaster can treat a retirement distribution as a disaster distribution, not subject to early distribution penalty, and spread the income recognition over 3 years, with the ability to repay within three years. 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted January 19, 2023 Author Report Share Posted January 19, 2023 Thanks @TexTaxToo I knew about the disaster loss, forgot about the Distribution rules. Appreciate you. Tom Longview, TX 1 Quote Link to comment Share on other sites More sharing options...
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