Tax Advice Following A Disaster

The reality is that it is best to have a plan to recover from a disaster before one occurs. But that is often not the case. If you have experienced a disaster — anything from a fire or flood to an earthquake or tornado — the first thing to do is ensure your and your family’s personal safety. Here are some tips for action immediately following a disaster.

If you haven’t developed an action plan for financial recovery — including the steps you’ll need to take in regard to filing your tax returns — then here are the basics. You can find more at our blog: Accountant For Disaster Recovery.

Recovering important records and documents

• Move quickly to

replace important documents that were lost or destroyed

• Do what you can to reconstruct lost financial records

• Document the loss

• Save receipts for all your expenses

• Make lists, as soon as possible, of all property that was damaged or destroyed

• Contact your insurance company right away

• If your home is uninhabitable, find out if your insurance company will pay for livingexpenses

• Begin salvaging

• File your claim

• Make it easy for the insurance company personnel to find you and your property

• Work with claims adjusters

• Consider bringing in an independent adjusters

• Settle the claim, but don’t be in too big a hurry to do so

 

If you are not insured

• Contact the Red Cross for assistance

• Contact the Small Business Administration for information on loans

• Contact Commercial and Federal banks regarding land bank loans

 

Repairing and rebuilding your home

• If you have to leave your home, let the local police know it will be unoccupied

• Let others know where you will be if you have to leave your home

•  If it’s safe to go back in your home, try to collect necessities and important papers

• Salvage what you can

• Make necessary immediate repairs

•  Find a reputable contractor

• Rebuild — but pay only for performance, periodically as the work progresses