APRIL, 2011
This issue contains the following articles:
Click on the name of the article you want to read below:
|
|
Be sure to listen to Alvin Pearlman, Burkhardt & Co.'s Tax Partner on WKRC's 550 AM Simply Money with Nathan Bacharach and Ed Finke on the first Thursday of the month at 6:00 pm.
Follow Alvin Pearlman's tax blog:
Al Pearlman blog
Visit our website: or Call us at: (513) 248-9210 |
We are Quickbooks certified. Please contact us for additional information. |
|
|
|
Thanks to everyone who stopped by our booth at the Clermont Chamber Business Expo.
Burkhardt & Co. booth at the Expo
Burkhardt & Co. drawing winners:
Congratulations to:
Keith Jones - $100 Outback gift card
Carl Hartman (Sports Zone USA) - $50 Outback gift card |
|
 If Disaster Strikes, Check the Tax Breaks
The recent events in Japan are reminders that disasters can occur at any time - often with staggering human and financial costs. If you're an unlucky victim of a disaster, you may receive help from insurance and federal disaster aid. But the tax code also offers some relief. You may be able to take an itemized deduction for part of your loss. In tax terms, it's a "casualty loss," and it can also apply to events such as a car crash, a house fire, or theft. Here are the basics:
- The loss or damage must be due to an unexpected and sudden event. Losses due to slow deterioration over the years, such as rot, rust, or insect damage, don't qualify.
- Your tax deduction won't equal your total loss. You must subtract any insurance or other reimbursement. Then you must also deduct $100 for each loss and 10% of your adjusted gross income.
- Your loss may also be limited by your adjusted basis in the property. That's generally what you paid for it, plus or minus any improvements or previous losses.
- In a widespread disaster, the area may be classified as a "Presidentially declared disaster area." If that happens, you have a special option. You can claim your casualty loss against the current year's taxes. Or you can amend the previous year's return and claim your loss against that year's taxes. That usually generates a faster refund, but it may change the amount of your deduction.
If you suffer a casualty loss, please contact us. We'll explain the rules and help you claim the maximum possible tax benefit.
|
Don't Lend Money to the IRS
Will you be among the thousands of taxpayers who get a big tax refund this year? While most Americans happily accept their tax refund checks, smart taxpayers understand that refunds actually cost them money.
Here's why:
- The government pays no interest on refunds. Kept in your hands, those dollars could have been productive. For example, you could have invested the money or used it to pay off your debt during the year. If the money had been added to a 401(k) plan, tax would have been deferred on both the investment and its earnings. Even better, your employer might have matched all or part of your investment, adding to your retirement savings.
- Refunded cash is not available for use until actually received. Even though most taxpayers get their checks promptly, circumstances or errors can delay (or stop) a refund.
- To prevent losing money on tax refunds, consider reducing your withholding or estimated tax payments. For most taxpayers, withholding must equal either the prior year's tax or 90% of the current year's liability. If your annual income changes little, it's relatively easy to avoid over-withholding. You should consider filing a revised Form W-4 withholding statement with your employer if you're having too much withheld.
For taxpayers with fluctuating income or multiple sources of income, the problem is more complex. The IRS provides a worksheet with Form W-4, but many people find the form complicated. If you'd like assistance adjusting your withholding, contact one of our tax specialists.
|
|
|
Please contact us if you would like additional information or would like to discuss any of the enclosed information in further detail.
Sincerely,
Burkhardt & Co. |
|
|
