Liberty Tax Covers Deducting Casualty and Theft Losses

 

Press Information
For Immediate Release
September 07, 2011 
   

 

 
CONTACT: Martha O’Gorman
Chief Marketing Officer
(800) 790-3863 ext. 8022
martha@libtax.com
 

 

Liberty Tax Covers Deducting Casualty and Theft Losses
IRS Has Extended Tax Deadlines for Some Taxpayers Affected by Hurricane Irene

  

 (Virginia Beach, VA)  The IRS has reacted quickly to extend some tax filing deadlines in the aftermath of Hurricane Irene. Some taxpayers and businesses in the hardest hit areas of North Carolina, New Jersey, New York and Puerto Rico will have until October 31, 2011 to file 2010 tax returns that would have been due September 15 or October 17 as a result of an extension and estimated quarterly taxes due September 15, 2011.   

Affected taxpayers may be eligible to deduct some of the losses, according to Liberty Tax Service. Casualty, disaster and theft loss deductions may be claimed to cover the loss or damage of property, assets and vehicles. There are a number of conditions taxpayers must meet, however, in order to be eligible for these benefits. For example, consumers may not write off losses for any damages that were covered by insurance unless they filed a claim for reimbursement and reduced the loss by the amount of the reimbursement. 

“Additionally, the amount of the loss must also be reduced by the salvage value of the item, which can be determined by the fair market value of that object,” according to John Hewitt, CEO   of Liberty Tax. In addition to reducing the amount by both the insurance reimbursement and salvage value, taxpayers must also deduct $100 for each casualty or theft event as well as another 10 percent of their adjusted gross income from the total. The remaining figure will serve as the allowable amount consumers may deduct in losses on their federal tax returns. 

Individuals who claim casualty and theft losses must itemize their deductions on Form 1040 Schedule A. Most casualty losses may only be claimed during the year in which they occurred; however, there are certain exceptions to this rule. For example, if taxpayers suffered losses as a result of living in a federally declared disaster area that required public or individual assistance, they may choose to file an amended return to claim the deduction for the preceding tax year. Theft losses, in contrast, are generally claimed the year in which the individual realizes the asset was lost or destroyed. 

The rules regulating casualty and theft losses can be very particular, so individuals who plan to write off these types of costs should consider speaking with a tax preparer to ensure they are filing correctly. This can help consumers mitigate any issues that may delay the tax agency from processing their returns. 

So far the IRS indicates the following counties and municipalities qualify for the extended tax deadlines: 

North Carolina: Beaufort, Carteret, Craven, Dare, Hyde, Pamlico and Tyrell 

New Jersey: Bergen, Essex, Morris, Passiac, and Somerset 

New York: Albany, Delaware, Dutchess, Essex, Greene, Schenectady, Shonarie, and Ulster 

Puerto Rico: Caguas, Canovanas, Carolina, Cayey, Loiza, Luqillo, and San Juan     

  

 

About Liberty Tax Service    

Liberty Tax Service is the fastest -growing retail tax preparation company in the industry’s history.  Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 8,000,000 individual income tax returns.  With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.  

Liberty Tax Service is the only tax franchise on the Forbes “Top 20 Franchises to Start,and ranks #1 of the tax franchises on the Entrepreneur “Franchise 500.” Each office provides computerized income tax preparation, electronic filing, and online filing through eSmart Tax.  Other services include audit assistance, a money back guarantee, and free tax return checking.   

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