Your Flood Damage May be Tax Deductible
By David D. Mobley, Jr. CPA
I
pray that you, your family and your business were not catastrophically
impacted by last month’s flooding but if you did incur damage it is not
too soon to begin thinking about the implications for your 2009 tax
returns.
Recent legislation changed some of the tax rules pertaining to losses
resulting from federally declared disasters. The new law removes the 10
percent of adjusted gross income limitation for net disaster losses and
allows individuals to claim the net disaster losses even if they do not
itemize their deductions. The new law also increases to $500 the amount
by which all individuals must reduce their casualty and theft losses
for personal-use property. For more info on the new legislation, read: Tax Relief in Disaster Situations.
If your property is not completely destroyed, or if it is personal-use
property, the amount of your casualty 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. The adjusted basis of your
property is usually your cost, increased or decreased by certain events
such as improvements or depreciation. For more information about the
basis of property, refer to Topic 703, or Publication 547.
If your business or income-producing property is completely destroyed,
the decrease in fair market value is not considered. Your loss is the
adjusted basis of the property, minus any salvage value and any
insurance or other reimbursement you receive or expect to receive. For
more information on determining adjusted basis, see Publication 551.
If your loss deduction is more than your income, you may have a net
operating loss. You do not have to be in business to have a net
operating loss from a casualty. For more information, refer to Publication 536, Net Operating Losses.
My advice to you? Keep track of all expenses involved in your
restoration including any for accommodations you had to make when your
property was unreachable or unusable then ask your tax
preparer to help you sort them out.
For questions about tax planning and preparation, David Mobley can be reached at (404) 325-1600. |
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Positive Trends: is the Housing Market Headed for Recovery?
By Deanna Sletten
 After
four months of rising home sales, the housing market is looking
brighter. The National Association of Realtors reported that between
April and July existing home sales experienced increases each month
with July leading with a 7.2% increase. It has been five years since
the real estate market has seen such an upward trend and it has led
many in the industry to believe that the market has finally bottomed
out and is heading for recovery... Read More |
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Brighten Your Kitchen with a Beautiful New Backsplash
By E. E. Kane
 The
backsplash in a kitchen is more than a catch-all for flying food and
water droplets. It is a highlight, and if it is done right, it will
enhance the style without attracting undue attention. Use the following
ideas to install a new, enlivening backsplash in your kitchen.
1. Paint
By far the cheapest material, paint is always an affordable choice for a new look... Read More |
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New Rules in Mortgage Lending
By Angela Baca
 New
rules from the Fed have changed mortgage-lending practices. Although
the new rules were put in place to help protect consumers, they may
also cause an increase in loan processing time.
Amendment to Regulation Z
On July 14, 2008, the Fed amended Regulation Z (Truth in Lending) to
prohibit unfair, abusive, or deceptive practices by mortgage lenders
and to restrict other practices. Lenders face new... Read More
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Stimulus Helps Homeowners Save Money
Courtesy of ARAcontent
 "What's
in it for me?" Homeowners will love the answer to that question as they
learn more about the new federal economic stimulus bill. The American
Recovery and Reinvestment Act of 2009, generally known as the stimulus
package, offers special tax credit incentives to homeowners to
encourage energy efficiency—the best part is it's easy.
Homeowners can get up to $1,500 maximum tax credit... Read More |
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Autumn Décor Accents
By J. A. Young
 Fall
is the season of cool, crisp weather, brilliant scenery and bountiful
harvests. Bringing the autumn indoors is a way to transform your décor
with both subtlety and a richness of color and warmth. Here are a few
ways you can add fall accents to your home.
Get Ornamental Gourds
Not just the requisite pumpkin for the porch, but several small to
large ornamental gourds to be used as a dining room table centerpiece,
as a coffee table prop and even to place here and there on the book
shelves. Ornamental gourds come in many sizes and shapes and their
appeal is great during the harvest season.
Decorate with Flowers in Seasonal Colors
Add a wreath to the door abundant with fall blooms dried and
interspersed on a grapevine. Consider hydrangea, yarrow and goldenrod
for a warm welcome into your home. Also, place bouquets of dried flower
arrangements throughout your home—each with fall.... Read More |
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