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Subject:  Casualty loss Date:  2/21/2012  10:06 PM
Author:  ptheland Number:  115181 of 129719

I got a head scratcher in today.

In Dec 2011, there was a wind storm that blew off part of the client's roofing on their home. But their roof is a flat roof and not visible from the ground. So they didn't know they had a problem.

In January 2012, the rain finally came and they ended up with some significant water damage.

What year do we claim the casualty loss? In 2011 when the roof damage happened? Or in 2012 when they discovered the roof damage and had the water damage?

Perhaps I need to look at Phil's favorite door number 3. Is it two casualties? One wind and one water. I don't like the tax result from that one, as then they have to take the 10% of AGI haircut twice. It would probably eliminate any tax benefit for the roof damage, as that is pretty small compared to the water damage.

Thanks for any comments.

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