The tax rules can provide relief when disaster strikes

Hurricanes, tornadoes, earthquakes, wildfires, floods, storms. Few parts of
the country escape the risk of natural disaster. If you’re an unlucky victim,
you may receive help from insurance and federal disaster aid. But the tax
code also offers some relief. You may be able to take an itemized deduction
for part of your loss. In tax terms, it’s a “casualty loss,” and it can also apply
to events such as a car crash, a house fire, or theft. Here are the basics.

• Sudden event. The loss or damage must be due to an unexpected and
sudden event. Losses due to slow deterioration over the years, such as rot,
rust, or insect damage, don’t qualify.

• Tax deduction. Your tax deduction won’t equal your total loss. You must
subtract any insurance or other reimbursement. Then you must also deduct
$100 for each loss and 10% of your adjusted gross income.

• Basis adjustment. Your loss may also be limited by your adjusted basis
in the property. That’s generally what you paid for it, plus or minus any
improvements or previous losses.

• Disaster classification. In a widespread disaster, the area may be
classified as a “federally declared disaster area.” If that happens, you have
two choices. You can claim your casualty loss against the current year’s
taxes. Or you can amend the previous year’s return and claim your loss
against that year’s taxes. That usually generates a faster refund, but it may
change the amount of your deduction.

If you’re unlucky enough to suffer a casualty loss, please
contact us at (219) 769-3616 or e-mail your questions to
tlynch@swartz-retson.com. We’ll help you claim the
maximum possible tax benefit.
SWARTZ, RETSON & CO., P.C

It's Not Just About the Money

Studies have consistently shown that employee compensation, although important, is
not the primary factor that makes workers stay at a company. It’s not all about the
money. In fact, some firms that provide stellar compensation packages suffer high
turnover, low morale, and dwindling market share. Others – including smaller
companies that may not offer tip-top benefit packages – maintain a loyal and
dedicated workforce that regularly contributes to the company’s success. In fact, many
studies show that happy workers provide more efficient production, better customer
service, and greater innovation. They’re also less likely to quit or call in sick.

What factors could make your company a better place to work? Here are four keys.

• Respect. Show employees that they matter by providing them with necessary
training, acknowledging outstanding work, and creating a healthy and upbeat
workplace.

• Fairness. Treat employees equitably. This applies, of course, to hiring and
promotion decisions, but might also include sharing the firm’s success through a
structured bonus plan.

• A sense of pride. Most people enjoy working with a team that accomplishes
something significant. Create this type of work environment and you’ll foster company
loyalty. Strive to make everything you do – and everyone you employ – an integral
part of the firm’s mission.

• Opportunities. No one looks forward to a dead-end job. Give your workers an
adventure to anticipate. Find ways to expand their horizons. For example, you might
provide cross-training to develop new skills or encourage innovation.
Even if you can’t offer the best compensation package on the planet, satisfied workers
can help propel your company forward. And they’ll let their talented friends know that
your company is a great place to work.

If you have any questions, please give us a call at (219) 769-3616
or e-mail your questions to dbatusic@swartz-retson.com.
SWARTZ, RETSON & CO., P.C.