With the recent tornado disasters, we’ve had many clients who have suffered timber damage.  The IRS has recently updated their guidance on how to claim timber casualty losses.  Casualty losses are limited to your basis in the property.  If you have timber casualty losses that occurred in 2011, you may claim those losses on a 2010 amended or extended tax return.  Please let us know if we can answer any questions or help you with any tax filings.

The link below will take you to the IRS Audit Guide on Timber Casualty Losses.

http://www.irs.gov/businesses/small/article/0,,id=238854,00.html