Here in Thousand Oaks, we have our share of natural disasters. The most recent example is the “Springs” fire that threatened our neighbors in Newbury Park, Dos Vientos, Camarillo and many of the foothill areas all the way down to Malibu.

Fortunately, the fire did not burn too many structures – the damage could have been much worse.

For those who did experience a loss, there are many things to keep in mind.

To claim a tax deduction for a disaster loss on a tax return you must first determine the status of all possible claims for compensation for the loss. The basic question that must be answered is – Are there any aspects of your claim for recovery that are not completed?

Taxpayers are faced with a complex situation after a loss. An important responsibility that we all have is that we must file a tax return each year without regard for the lack of information that exists about a disaster loss.

I have met people who have experienced a disaster who had been incorrectly told that they did not have to file returns for two or four years. That is not true. Your situation is not settled and yet you have to file tax returns and report what you do know. The law requires that a loss cannot be claimed until the situation has been settled. That means that a 2012 loss may end up being deducted on a 2013 or even a 2014 tax return. There is not much written on this requirement in the popular press.

If you or someone you know needs more information about tax issues following a disaster, visit our blog dedicated to disaster-related tax accounting issues. We have detailed information at your disposal — and as a CPA based in Thousand Oaks, I can meeting with anyone dealing with our own local disaster.