• You should consult with a tax professional. Casualty loss rules are a particularly complex part of the Internal Revenue Code, and it’s hard enough for the average person to understand them, let alone take full advantage of them. United Policy Holders recommends contacting a Certified Public Accountant (CPA) or Enrolled Agent (EA) who has worked with disaster survivors in the past. • Insurance proceeds and grants or gifts specifically designated for “contents or personal property” losses related to a primary residence are not subject to taxation, even if they cause a gain or potential gain. These proceeds must still be considered when calculating deductions for losses, similar to computing a loss on your real property.
Rebuilding
• Do not rush into clean-up, repairs, or rebuilding without first considering all your alternatives, no matter how badly they are needed.
• LA County and City officials have set up specific pathways for the rebuild including an executive order from the LA Mayor Karen Bass and from Governor Gavin Newsom.
• Buy or Rebuild Considerations
• Fast Facts: Rebuilding After a Disaster
• Contractor Considerations: o Hire only California-licensed contractors. Ask to see the license. The number must be on all advertisements, contracts, and business cards. You can check with the California Contractors State License Board (CSLB) website tools Find My Licensed Contractor and License Check o Confirm that the contractor carries general liability and workers’ compensation insurance. Ask them to provide proof of their insurance and contact the insurance company to verify that they are truly insured. Do not do business with a contractor who does not carry the appropriate insurance coverage. If the contractor is not insured, you may be liable for accidents that occur on your property. o Check references when hiring a contractor. Ask the contractor for the names and contact information of their suppliers, subcontractors, and previous customers. Talking with these folks can reveal a lot about the contractor’s professional reputation. o Get multiple bids for comparison, and be sure to read the fine print on all estimates and contracts. o Don’t pay more than 10 percent down or $1,000—whichever is less.
Next Steps: Where to Start After a Fire Venbrook Insurance Services | CA License 0D80832
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