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In This Issue...
IRS Further Extends Filing Deadlines for Victims of Hurricane Sandy
Casualty, Disaster, and Theft Losses (including Federally Declared Disaster Areas)
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suzanne
Suzanne LoBiondo, CPA
516-791-1303

 
 
Chris
Chris Cheeseman, CPA
516-791-1303

Dear Clients and Friends,

 

Tax season is upon us once again and we are now scheduling appointments for those who want to come in to our office.  Please call us at 516-791-1303 if you would like an appointment.  if you prefer to mail in your information, please do so as soon as you have collected all your 2012 documents.

 

For those of you who were victims of Hurricane Sandy, some tax relief may be available for your 2012 tax filing.  Please contact us with any questions you may have.

 

We appreciate your business and thank you for your continuing referrals.

 

Very truly yours,

Suzanne LoBiondo and Christopher Cheeseman

 

IRS Further Extends Filing Deadlines for Victims of Hurricane Sandy 

 

As part of a coordinated federal response to the damage caused by Hurricane Sandy and based on local damage assessments by FEMA, the IRS on February 1 announced additional tax relief for affected individuals and businesses in the counties of Monmouth and Ocean in New Jersey and Nassau, Queens, Richmond and Suffolk in New York. The tax relief postpones various tax filing and payment deadlines that occurred starting in late October; as a result, affected individuals and businesses will have until April 1, 2013, to file these returns and pay any taxes due.

 

The relief includes the fourth-quarter individual estimated tax payment, normally due on January 15, 2013. It also includes payroll and excise tax returns and accompanying payments for the third and fourth quarters, normally due on October 31, 2012, and January 31, 2013, respectively, and calendar-year corporate income tax returns due on March 15. It also applies to tax-exempt organizations required to file Form 990 series returns with an original or extended deadline falling during this period. Further, any interest, late-payment or late-filing penalty that would otherwise apply will be abated. The IRS automatically provides this relief to any taxpayer located in the disaster area. Taxpayers need not contact the IRS to get this relief.
Casualty, Disaster, and Theft Losses (including Federally Declared Disaster Areas)

 

Generally, you may deduct casualty and theft losses relating to your home, household items and vehicles on your income tax return. You may not deduct casualty and theft losses covered by insurance unless you file a timely claim for reimbursement, and you reduce the loss by the amount of any reimbursement or expected reimbursement.

 

A casualty loss can result from the damage, destruction or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, etc.

 

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of:

 

  • The adjusted basis of your property, or
  • The decrease in fair market value of your property as a result of the casualty

 

If your property is business or income-producing property, such as rental property, and is completely destroyed, then the amount of your loss is your adjusted basis.

The loss, regardless of whether it is a casualty or theft loss, must be reduced by any salvage value and by any insurance or other reimbursement you receive or expect to receive. The adjusted basis of your property is usually your cost, increased or decreased by certain events such as improvements or depreciation.

 

Individuals are required to claim their casualty and theft losses as an itemized deduction on schedule A. For property held for personal use, once you have subtracted any salvage value and any insurance or other reimbursement, you must subtract $100 from each casualty or theft event that occurred during the year. Then add up all those amounts and subtract 10% of your adjusted gross income from that total to calculate your allowable casualty and theft losses for the year.

 

If you think you may qualify for a casualty loss deduction due to Hurricane Sandy, please contact us at 516-791-1303 or info@clcpasllp.com.

 
About C&L Tax and Accounting Services LLP
 
clC&L Tax and Accounting Services LLP is a boutique CPA firm that specializes in meeting the tax and accounting needs of individuals and small businesses. Our experienced tax and accounting professionals offer clients insightful and strategic tax planning and compliance services that maximize savings year after year.

C&L Tax and Accounting Services LLP's offers a wide range of tax and accounting planning, compliance and consulting services for both individuals and small businesses. We invite you to peruse our capabilities and contact us for a consultation.