NEWS ALERT: BP SETTLEMENT DOCUMENT DETAILS OUT APRIL 18 2012
A classic claim that would work very well in the BP settlement would be vacation property losses. Many people live up north and have a vacation home on the beach that they rent out when they don’t use it them self. Well the rental vacation homes in 2010 where hit very hard by the BP oil spill and losses from 2010 rentals is a classic claim that the BP settlement will pay out. The multiplier on the loss dependens a little bit on where you vacation home was located but if it where within 1/2 mile from the beach then the 3.5 multiplier applies to the rental loss.
Figuring Out Your Vacation Property rental Loss
First if you are going though the BP settlement fill out a form and the attorney will figure out your losses for you but so you can see what you can get here are the calculation.
First you take the worst 3 month in 2010 for your rental. Lets say income was $3,000 compare that to 2009 where rentals where $9,000 for the same 3 month. Now you have a 3 month loss of $6,000. That would make it a 12 month loss of $24,000 (6,000 x 4) . You rental loss according to the BP settlement calculation is $24,000 and you would get that times 3.5 . A total claim of $84,000
That is how the calculation would be under the new rules for the BP settlement. In many cases the yearly total does not matter, if you had 3 bad month then that is what makes a basis for the year. So it could be you made more more in the rest of the month to not show a loss in 2010, but in the BP settlement it does not matter.
750 page BP Settlement Document
Tomorrow is when the 750 page BP settlement document will come out, its hopefully going to give guidelines for everything under the sun of how to calculate a BP claim. I will publish the document as soon as I have it but be aware of going though legal documents like this without an attorney to handle your case. There are to many different ways to look at a claim to not have an attorney do it for you. Sign up now before the BP settlement becomes final and get your case into an attorney that can start working on it.