Now that wildfires have been added to the list of disasters
for which some tax relief measures have been granted, our ability to feel safe
keeps being chipped away at. As these situations come at us with alarming
regularity, they have caused many stories and tips (including from me) to be
put out there in the hopes of helping people prepare for such events. What if
it’s already too late, though?
It is that situation that prompted the IRS to release some
tips for those who need to reconstruct records after a disaster. I think
they’re worth mentioning here, for not only is it good advice and guidance for
those who are in the unfortunate situation of needing to immediately heed it,
but it also gives some ideas on how you might want to handle recordkeeping to
try to mitigate the pain, hassle, and heartache that disaster may cause.
For overall, the more organized you were beforehand (while
hopefully seeing the need to keep those organized records in more than one
place), the easier it will to put things together afterward.
But if you need to still create a list of lost inventory,
contacting suppliers for past invoices can help you start to document goods
that you purchased. This won’t necessarily allow you to arrive at any final
numbers, but will provide a baseline of information to work with.
Those numbers can work hand in hand with income, too, some
of which can be found from old tax documentation. This includes federal, state,
and local returns, but if you’re a business, don’t stop there,, for you should
also be able to acquire sales tax reports and payroll tax documentation.
All this can start to give you numbers, but one could be
most interested in trying to document the loss of property. Much of that may
not be recorded in any of the above documents, especially for types of property
that you have had for years, and frankly, those can often be some of the more
valuable pieces you own.
The best thing to do in that situation is have photos or
videos of the property. It is good practice to keep such evidence for insurance
documentation, but even if you did not take that step in a proscribed and
clinical way, the IRS offers the interesting idea of checking your mobile phone
and other cameras for anything that could have been captured on photos or
videos that you have there.
Barring that, though, business owners should still sketch
out the interior and exterior of their locations, nothing where equipment and
inventory was located. For the outside of buildings, note as many things as
possible as landmarks, include parking areas, and include anything damaged in
the incident.
These are just small tips, but at least they offer some
guidance for those who could be in situations where they feel helpless. To keep
yourself from becoming helpless in the future, though, think of those steps you
could take now to ease the pain of future disasters. There’s no way to make
such things easy, but simple steps will feel much bigger when you’re in a
situation that makes you glad they were taken.
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