KXNet - Bismarck/Minot/Williston/DickinsonTax Help for Flood Victims

Tax Help for Flood Victims

Thousands of people who had their house damaged or destroyed or lost personal property from the affects of the Mouse River Flood this past summer are now facing the tumultuous task of filing federal income taxes.

Because the flood was declared a Presidential Disaster it does give the people a better chance for recovering a portion of their losses.

Today the North Dakota Tax Department hosted an informational seminar for flood victims.
Representatives from the IRS outlined key tax issues that directly pertain to this region's disaster; including which forms to fill out, how to request old tax filings if yours were destroyed, tax issues from abandoning a home, or establishing your total loss.
Tax Commissioner Fong says that last issue can be very complex and it's up to the home owner to calculate how much loss was incurred so they either file their taxes themselves or take it to a tax professional.

(Cory Fong, North Dakota Tax Commissioner)  "That paid professional is not going to be able to tell you what the basis of your home is, in other words what your investment is, your purchase prices plus any kinds of improvements you've made over the years whether it's putting in a new furnace, putting on a new roof, building, landscaping your yard all of that is going to build into your basis, you need to go into your paid professional and say here's my basis in terms of determining your what your loss and fair market value you need to have that calculated before hand."

Fong says the most important place to start figure the loss is itemizing everything that was damaged or lost in the flood and the figuring the fair market value which is different from the replacement value.

Go online to www.nd.gov/tax for more information.