14 THE QUEENS COURIER • SEPTEMBER 21, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM
Extensions for Harvey Victims
Call Now & End Your Tax Nightmare!
Co-Author of the
best selling book
“Breaking the Tax Code”
Salvatore P. Candela, EA, ATA, ABA
Enrolled Agent - Tax Advisor
BY JOHN SAVIGNANO, CPA
As Texas faces a long recovery
from Harvey, IRS, like a good
neighbor, is there to help.
Victims have until January 31st
to file 2016 returns, assuming they
previously got proper filing extensions.
This deadline also applies to
estimated tax payments originally
due on September 15th and January
16, 2018, as well as to payroll tax filings
and excise tax returns.
Leave-donation programs get
IRS’s blessing. Some employers
will let workers forfeit paid vacation
or sick days for cash payments
the employer makes to charitable
organizations that assist victims of
Harvey. According to the Service,
workers won’t be subject to payroll
or income taxes on the value of
the donated leave, but they also are
not able to take charitable deductions
on their income tax returns.
Employers are able to write off the
payments to the charities as a business
expense.
Employers can give tax-free
assistance to employee victims of
Harvey. Firms can help employees
pay for necessary personal, family,
living or funeral costs, as well
as home repair expenses, provided
the amounts aren’t covered by
insurance. These qualified disaster
payments aren’t taxable to a worker,
and the employer can generally
deduct them. Alternatively, an
employer-sponsored private foundation
can give the money to company
employees without jeopardizing
its tax-exempt status.
Victims of Harvey are able to tap
qualified employer plans more freely.
IRS is temporarily easing the
hardship payout rules so victims
can take funds for their living costs
or other needs arising from the
disaster, and plans will be allowed
to speed up payment. Ditto for
withdrawals by plan participants to
help relatives who live or work in
the affected counties. Payouts will
still be taxed, and the 10% fine for
early distribution may apply. Plan
loans can also be made on an expedited
basis.
For taxpayers whose home, car
or business property was damaged,
you can deduct your losses to the
extent you aren’t reimbursed by
insurance. Your loss is equal to
the lesser of the property’s adjusted
basis or decline in value, less
any insurance proceeds you got or
expect to get.
Only itemizers can claim a deduction
for damage to nonbusiness
property. The balance is deductible
only to the extent it exceeds 10%
of the adjusted gross income. The
rules for deducting casualty losses
on business assets are more liberal.
The $100 and 10%-of-AGI offsets
don’t apply, and nonitemizers can
write off losses.
Consider amending your 2016
return to deduct your casualty losses.
Losses incurred in Harvey can
be taken on either your 2016 or
2017 tax return. If you’ve already
filed for 206, claim the loss on an
amended return to get a refund.
You can expect IRS to grant similar
relief to victims of Hurricane
Irma.
John Savignano is a partner with
Savignano Accountants & Advisors
located at 47-46 Vernon Blvd.,
Second Floor, in Long Island City.
If you have any questions or require
additional information, please call
John at 718-707-0955.
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JOHN J.
CIAFONE, ESQ.
MILLION DOLLAR ADVOCATES FORUM
THE TOP TRIAL LAWYERS IN AMERICA TM
Admitted in NY NJ
and Washington DC
Attorney At Law
25-59 Steinway Street
Astoria, NY 11103
718-278-3900
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