Did the sudden snow storm cause you damage? The tax man may help.

If you live in the northeast and were pummeled by the October snow storm, Realty Times has a, well, timely, article dealing with the disaster loss tax deduction. Headlined, “How to Write Off a Disaster Loss For Property Damage” by Broderick Perkins, it’s on point.

“Next year, 2012, is supposed to be the year we lose it all, but 2011 came close. It's shaping up to one of the worst years ever for disaster losses.

“Thanks to tax relief, it's not the end of the world.

“The Internal Revenue Service (IRS) allows you a tax deduction for casualty losses, including losses due to property damage or destruction.”

Casualty losses are treated similarly to mortgage interest and property taxes, i.e., casualty loss is an itemized deduction included on Schedule A that are subtracted from your adjusted gross income, which reduces your taxes by reducing the amount of your income that is actually taxed.

Some rules,

“First, the deduction is only available to the extent that insurance or other forms of compensation don't cover the cost of damage or destruction.

“Second, if the disaster carries a presidential declaration, you can immediately, after the disaster has the presidential declaration, amend your last tax return to deduct the loss. Otherwise, you must wait to file for the deduction with your next tax return.

“Third, state tax laws vary on casualty loss deduction and because the deduction can involve large amounts and complex calculations, you should seek the help of an enrolled agent, certified public accountant or other tax professional to help you complete you state and federal tax returns.”

Read the full article here to learn more about casualty losses and your income taxes.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Stephen's Title Agency, LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Loss of state support may end horse racing in New Jersey

New Jersey property owners are already hit hard by the state of New Jersey’s economy.  Taxes, taxes, and taxes head the list of complaints.  Now, a double-edged sword is being raised at one of N.J.’s homegrown businesses—horse racing.

According to a special report in the Asbury Park Press,

“Those in the New Jersey equine industry say the horse-racing business generates $780 million annually for the state's economy, responsible for more than 6,500 jobs.

“But with Gov. Chris Christie's proposal to shift the state's focus from horse racing to the casinos in Atlantic City, local horse farmers and other business owners worry the equine industry would lose its vitality or dissipate altogether.

"’People in the sport are going to go where horse racing is viable,'' said Tim Clevenger, 26, who tends to standardbreds every morning at a Manalapan farm.”If not here, they're going to race someplace else or get out of the game.’''

OK, so just how does this affect the quality of life in New Jersey?  Well, some will say that the 176,000 acres of real estate now being used for horse farms and related purposes will be, here comes the dirty word, developed into housing. 

In addition,

“In a study headed by Karyn Malinowski, director of Rutgers' Equine Science Center, the state's equine industry was valued at $4 billion, much of it related to racing. It generates $1.1 billion ($780 million from racing) annually in positive impact on the state economy, the study said, and is responsible for 13,000 jobs, more than half of which are generated by racing-related interests, such as race tracks, and horse breeding and training facilities.”

Read the full story.

If you have questions about what you see here, contact
Stephen M. Flatow
Stephen's Title Agency, LLC
www.stephenstitle.com
StephensTitle@comcast.net