This is not a popular deduction, and few people probably realize it is even an option. But if you have a casualty loss then you can write that off, even if it is a personal asset (like a car or home). [Usually personal losses are not allowed and only business losses can be deducted, but this is the exception].
Your loss has to be the complete or partial destruction of property resulting from a sudden, unexpected and unusual identifiable event. This rules out natural wear and tear (like the need for a new roof after 20 years or an AC unit after 10). However, if the damage is the result of:
Fires, either started by, for example, an electrical short or a lightning strike;
Storms, such as tornadoes, ice, hurricanes and the like;
Floods or, in some cases, droughts; and
- Burglary or theft
Earthquakes and mudslides.
then you probably have a loss that you can claim.
You have to reduce your claim by any insurance money your receive. The claim is also limited in other ways by the IRS formulas, basically making it worth your time and effort to only claim large casualties.
More info
here and
here.
Most people are familiar with the
sales tax holiday for school supplies and clothing that his coming up Aug 7-9. It can be a chance to save 6.75% on that new computer you need or those new shoes you've been eying.
But did you know NC also has a sales tax holiday coming up in November? That's right, another tax amnesty is coming up Nov 7-9 on energy star qualified products. So if you need a new "Clothes
washer, freezer, refrigerator, central air conditioner, room air conditioner, airsource heat pump, geothermal heat pump, ceiling fan, dehumidifier, or programmable thermostat" then this is just for you. Note that these have to be purchased for personal (not business) use. More details can be found
here.
On July 24th the final phase of the federal minimum wage increase went into effect. That makes the current minimum wage in NC $7.25. To read more about this change, as well as some of the exceptions to this rule, you can go
here, or
here.
Disclaimer
The content on this blog (www.acollinscpa.blogspot.com) is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. It should not be relied upon as specific tax advice for your personal situation. I strongly suggest that when it comes to filing your taxes, you get additional, professional guidance from individuals who are familiar with your specific circumstances. Those who choose to rely solely upon the information on this site do so at their own risk and peril, and cannot hold the author liable in any form or fashion.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
