What if the salvage value is unknown?
The problem that calendar year taxpayers face is that this particular storm happened right before year-end and even now the extent of the damage is unknown. Even if you have a calendar year you should estimate the salvage recoverable to reduce your loss. If in fact the salvage value differs from what is actually received then you would recognize either that extra expense or income in the next year. Every effort should be made to determine the actual loss and salvage value before the filling of your next return in order to minimize the risk of missing the expense/income in a subsequent year. Where do I report a casualty loss? Casualty losses should be reported on Form 4684. In order to claim the loss you should provide detailed information as to the quantity of the timber lost or damaged as well as identifying it by specific tract if more than one tract of timber was affected. If you do not have room on the form attach a supplementary schedule detailing the required information. Follow
