If you have had a fire at your home or an auto accident, you may be able to take a casualty loss deduction on your taxes. Casualty losses apply to personal property – if the property is completely destroyed the loss is the adjusted basis in the property less insurance reimbursement; if the property is only partially destroyed then the loss is the lesser of adjusted basis of property or loss of fair market value of property less insurance reimbursement. The loss is taken as an itemized deduction and has to be reduced by $100 per casualty and then 10% of your adjusted gross income. You also have to file form 4684. If you can get through all that, you have a casulaty loss; of course you have to be able to use schedule A, or you have to still take the standard deduction and lose any additional loss.Here is a link to the IRS rules on casualty losses:http://www.irs.gov/taxtopics/tc515.html
Brian’s Tax Musings
Should you ever take 100% of your phone or auto expenses as business related?Normally I don’t like to take 100% of these items as the government has a history of looking at these items much more frequently than when only 75% – 90% of usage is for business. However, if you have a separate cell phone for business use only (you have a personal cell phone too) or you have a special car you park at your office and only drive for business, then by all means let’s take 100%. These situations have to be looked at on a case by case basis. If you dirve that car home every day from work, then 95% would be more appropriate than the full 100% and could reduce scruntiny by the government. This is why tax preparation is an art, not a science (and I am an artist, not a mad scientist – most artists are sort of crazy anyway.)
Brian’s General Musings
Hey everyone:Last night Dorothy, Kirsten and I went to the Sugarland concert at the Greek. I am not the greatest country music fan of all time, but since the devide from country to rock to pop has been fading over the years I am more willing to accept the general concept and the concert was great (hey The Eagles aren’t that different and I loved the concert we went to 4 years ago at Staples). Anyway we had a great time.