The IRS provides disaster relief

 

In the aftermath of a disaster, implementation of established plans can help you get back to your daily routine. Still, no matter how prepared you are, some things — such as tax deadlines — can be overlooked during the recovery period. What happens if you discover you've forgotten to file a return or make a deposit?

Here are examples of tax relief available when you or your business are affected by a federally declared disaster.

• Postponed deadlines. Deadlines for personal and business returns, as well as tax deposits, can be postponed for up to a year. The length of the postponement for each disaster area is determined by the IRS, so you'll want to verify how much additional time you have.

• Penalty abatement. Penalties for failing to file certain returns or make required deposits are waived during the postponement period. The waiver is generally automatic and may also apply to interest.

• Prioritized processing. You have the option of amending last year's return to claim losses from a current year disaster. Amended returns flagged with applicable "disaster designations" are typically expedited so you get a refund quickly.

Were prior year returns lost in the disaster? Requests for replacements are expedited and the usual fees are waived.
Please call us at (949) 453-1521 for more information, and remember you don't have to navigate disaster-related tax matters on your own. We're here to help. $$

Don't miss deductions that are still available for 2013

As temporary tax breaks expire and are re-extended, it is sometimes confusing to remember which ones are effective for a particular tax year. Here are several deductions that are still available for your 2013 federal income tax return.
 Teacher expenses. If you’re an eligible educator, you can deduct up to $250 of out-of-pocket expenses for classroom supplies and materials. The deduction is above-the-line — meaning you don’t have to itemize to claim it.
Tuition. Another above-the-line tax-saver available for 2013 is the tuition and fees deduction for higher-education expenses you pay for yourself, your spouse, or your dependents. The maximum deduction for 2013 when you’re married filing a joint return is $4,000. Income limits apply.
State and local sales tax. You can benefit from this itemized deduction by choosing to claim state and local sales taxes that you paid during 2013 instead of state and local income taxes. You have the option of claiming the actual amount based on receipts, or using an amount from IRS-created tables. If you use the IRS tables, you can add the sales tax you paid for certain large purchases such as vehicles.
 Asset expensing. Under a tax provision called the Section 179 deduction, you can choose to expense the full cost of new or used assets you placed in service during the year. For 2013, the maximum Section 179 deduction is $500,000 when total asset purchases for the year are $2 million or less. Bonus depreciation. New equipment with a depreciable life of 20 years or less, certain leasehold improvements, and computer software are eligible for an additional, or "bonus," first-year depreciation deduction. For 2013, you can write off up to 50% of the cost of a qualified asset used in your business.
Do you need information about other tax deductions not mentioned here? Please give us a call at (949) 453-1521 for the latest details $$