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When Can a Taxpayer Deduct Disaster Losses?

A disaster loss is a tax-deductible loss that occurs in federally declared disaster areas—think floods, forest fires, or earthquakes. Much like a casualty loss, it involves damage to property, but only if the President has declared the area a federal disaster zone.

💡 Disaster Loss Deductions

The IRS states, “Generally, you may deduct casualty and theft losses related to your home, household items, and vehicles on your federal income tax return if the loss is caused by a federally declared disaster.”

However, don’t count on claiming losses covered by insurance unless you file a timely reimbursement claim and adjust the deduction by any amount you expect to recover.

Casualty Loss Categories

There are three main categories of casualty losses related to federally declared disasters, as outlined in IRS Publication 547 or Form 4684:

📌 Federal casualty losses
📌 Disaster losses
📌 Qualified disaster losses

From 2018 through 2025, personal-use property losses—whether from fire, storm, or theft—are only deductible if tied to a federally declared disaster. You can claim a casualty loss deduction in the same year the damage happened, but only if you’re not expecting reimbursement from insurance.

💡 Calculating Your Casualty Deduction

When claiming a casualty deduction, subtract the salvage value from the asset’s adjusted basis, then reduce that by any insurance payouts. The remainder is your casualty loss deduction.

❓What Qualifies as a Deductible Casualty Expense?

To qualify for a deduction, casualty losses must result from sudden, unexpected events. Theft losses, on the other hand, require proof that the property was actually stolen—not just misplaced.

💡 Which Losses Don’t Qualify?

Certain types of losses are not deductible, including:

Long-term damage from erosion, drought, or termite damage
Losses resulting from foreseeable events (i.e., something you could anticipate)

❓How to Claim Your Disaster Loss Deduction

To claim a disaster loss deduction, fill out Part I of Section D on Form 4684 and attach it to your tax return or amendment. This process ensures your disaster loss is reflected accurately for tax purposes.

✅ Claiming or Amending Your Tax Return

Need more details on disaster loss deductions or thinking about amending your return? We’re just a phone call away to help guide you through the process.

Need Help?

Dealing with a disaster is stressful enough—don’t let tax deductions add to the chaos. Contact us today for personalized guidance on how to maximize your disaster loss deduction and get your tax situation back on track

Urgent: New Federal Filing Requirement for LLCs and Corporations – Act Before the December 31 Deadline!

If you’re a business owner with an LLC or corporation, we’ve got an important update for you. There’s a new federal requirement under the Corporate Transparency Act that means you need to file a Business Ownership Information (BOI) Report with FinCEN. But before you start worrying about complicated filing processes or hefty fines, let’s break it down.

⚠️ Don’t Get Ripped Off

You may have already come across some alarming emails or ads warning of severe penalties or offering to file this report for outrageous fees. Don’t fall for it. We’ve seen people charging hundreds or even thousands of dollars for something that takes only 5–10 minutes to complete. These high fees are totally unnecessary, and it’s nothing more than taking advantage of business owners.

❓ Why Is This Required?

In a nutshell, the U.S. government is asking if your LLC or INC has any foreign ownership. That’s the key focus of this filing – simple as that.

📆The Deadline You Need to Know

This filing isn’t optional. Your BOI Report is mandatory and needs to be submitted by December 31, 2024. If you don’t file it in time, there could be penalties, so don’t let this slip through the cracks.

❓ How to File

We’ve partnered with FinCEN Advisors to make this process quick and easy for you. You can e-File your BOI Report in just a few minutes! It’s a one-time filing, unless your LLC or INC ownership changes down the road, in which case you’ll need to submit an updated report.

What You Need to e-File

Filing is simple, but you’ll want to have these details ready before you start:

📌 Your company’s legal name and any trade names (if applicable)
📌 The address of your principal place of business
📌 The state of formation where your LLC or INC was originally registered
📌 Your company’s EIN number
📌 Information on each beneficial owner: name, date of birth, residential address, identification number, and a copy of their driver’s license or passport

Which Plan Should You Choose?

When filing your BOI Report with FinCEN Advisors, go for the most affordable starter plan if you’re only reporting one LLC or corporation. If you have more entities, choose the best pricing option to save money.

Why We Can’t File This for You

While we’d love to handle this for you, our firm’s professional liability limits us from filing legal documents on your behalf. That’s why we’re informing you about this requirement and providing you with an easy way to e-File and avoid penalties.

Don’t Miss the Deadline!

To avoid potential fines, be sure to e-File your BOI Report by December 31, 2024. Or, if you prefer, you can file it yourself on the official FinCEN website.

You Do Not Want to Be On the Radar of the IRS

Hey there, fellow taxpayers! If you’re climbing the income ladder or managing foreign accounts, you might want to stick around for this one.

The IRS’s New Game Plan: Keeping the Wealthy in Check

The tax wizards at the Internal Revenue Service are shaking things up, focusing their magnifying glass on the high rollers – we’re talking million-dollar earners with a hefty tax tab. They’ve pinpointed about 1,600 of these affluent folks owing a mountain of unpaid taxes. Starting in 2024, specialized IRS agents will start knocking on doors. So, if you’re in this exclusive club, expect a friendly visit soon.

But hey, it’s not all about those who earn over a million. The IRS is also focused on those claiming certain tax credits. For those earning under $400,000, the IRS promises a gentler touch. They’re particularly watching out for those claiming the Earned Income Tax Credit (EITC) – ensuring no unnecessary hassles.

AI’s the New IRS Sidekick for Big Partnership Audits

Moving onto partnerships – the IRS is upping its game here too. They’re eyeing 75 mega-partnerships, each with assets over $10 billion. AI’s stepping in to help, using machine learning to sniff out the oddities in these complex returns. If you’re part of a big partnership, especially in private equity, hedge funds, or real estate, you might want to double-check those numbers. And while the IRS is focused on assets over $10 billion, we can only assume once they’ve built out their AI game, they will more easily be focused on smaller partnerships too. So make sure your partnership filing is kosher now.

The Overseas Account Dilemma

Now, for those with a taste for international finance, listen up. If your foreign bank account is over \$10,000, the IRS expects you to report it. They’ve caught wind of some fishy behaviors with average account balances over $1.4 million. So, if you’ve got global financial footprints, it’s time to get your papers in order. There are hefty penalties for non-reporting.

What Does This Mean for You?

Alright, folks, here’s the deal. If you’re part of the million-dollar club, dabble in major partnerships, or have offshore accounts, the IRS might have you in their sights. Even if you’ve been audit-free before, things are changing.

But fear not!

This is where a savvy Tax and Accountant Firm, like Insogna CPA, can be your superhero. They’re armed with the know-how to keep you compliant and out of the IRS’s hair. Trust me, when it comes to handling those intricate tax details, having a pro by your side is priceless.

Want to keep the IRS off your radar?

So, whether you’re a small business owner or a high-income earner, staying on top of your tax game is key. Contact us today and let us help you stay ahead with proactive tax planning.

How the New FTC Rule on Fake Reviews Affects Your Business

Have you been leaning on online reviews to boost your brand’s credibility? Well, buckle up—because the Federal Trade Commission (FTC) just dropped a new rule on fake reviews and testimonials, and if you’re not careful, you might find yourself in hot water.

Here’s the scoop on what you need to know to stay out of trouble—and how it could actually be a good thing for your business.

❓ What’s the New Rule About?

The FTC is tired of fake reviews muddying the waters for consumers and businesses alike. They’ve had enough of shady testimonials, AI-generated nonsense, and reviews from insiders pretending to be regular folks. The goal? Keep things real and fair for everyone.

Here’s the breakdown:

📌 Fake Reviews: Posting or paying for reviews that are fake—whether it’s a bot, your best friend, or someone who hasn’t even seen your product—is now a no-go.
📌 Buying Reviews: Handing out freebies or cash for positive or negative reviews? Nope. Not unless you’re being fully transparent about it.
📌 Insider Reviews: If your employees, managers, or even relatives are leaving glowing reviews without mentioning they’re on your payroll (or in your family group chat), that’s a problem.
📌 Controlling Review Websites: You can’t run a review site and act like it’s impartial if you’re using it to push your own products. People see right through that.
📌 Review Suppression: Hiding bad reviews through intimidation or legal threats? Yeah, not allowed anymore. And don’t think you can get away with only showing the good stuff.

❓ How Could This Affect Your Business?

If you’ve been cutting corners with fake reviews, it’s time to stop. The FTC sees them as a way to rig the system, and now they’ve got more muscle to crack down on it. Violating this rule could lead to fines or legal drama you don’t want.

But here’s the upside: if you’ve been doing things by the book, this new rule can actually work in your favor. It’s going to level the playing field. No more competing with businesses that buy their way to the top with fake reviews. Plus, consumers will trust reviews more, knowing they reflect actual experiences.

❓ What Should You Do Now?

1️⃣ Audit Your Reviews: Take a hard look at your reviews. If you’ve got any that were paid for or written by someone with ties to your business, make sure that’s disclosed—transparency is key.
2️⃣ Be Upfront: If you’re offering an incentive for reviews, that needs to be clear in the review. No sneaky tactics allowed.
3️⃣ Use Legit Review Platforms: Stick to platforms that verify reviews. This gives you peace of mind that the feedback you’re getting is real.
4️⃣ Get Real Reviews: Ask your actual customers to leave reviews. Genuine feedback is way more valuable in the long run than fakes, and it keeps you on the right side of the law.

❓ Why Does This Matter to You?

Building trust with your customers is everything. This new FTC rule is all about making sure reviews reflect real customer experiences, which means more trust in the marketplace. Staying compliant not only protects you from legal headaches, but it also helps build your brand’s credibility.

So, as you continue growing your business, remember: authenticity always wins. Honest reviews lead to loyal customers, and fake ones? They’ll only lead to fines—or worse.

Don’t get caught off guard. The new rule is in effect soon, and you’ll want to be ready.

7 Must-Know Tax Tips for Global Entrepreneurs in 2024

You’re living your best life abroad, but there’s a nagging question in the back of your mind: Do I still have to deal with U.S. taxes?

Well, strap in because I’ve got the lowdown for you—and trust me, it’s not as mind-boggling as it seems.

💡 Tax Residency

Where you rest your head matters for U.S. taxes. If you’ve got a U.S. Green Card or Passport, Uncle Sam wants to know about all your income, whether it’s from a cozy corner in the U.S. or halfway across the globe. But, if you’re living that free-spirited life without these, how you make your money will dictate your tax status.

Becoming a U.S. Resident

Want to join the tax-paying elite in the U.S.? You’ve got some options:

📌 Snag a Green Card (basically the VIP pass for foreigners).
📌 Rack up enough days in the U.S. to pass the “Spending Time” test.
📌 Make a first-year election and wave the tax flag early.

And if you’ve got a U.S. Passport, you’re a full-time tax resident no matter where in the world you’re sipping that latte.

💡 Tax Rules for Non-Resident Aliens

If you’re not in the resident club, you’ll only pay taxes on what you make in the U.S. Different types of income might have different tax rates. Let’s say you’re selling stuff on Amazon USA – that means you’ve got U.S. nexus and owe U.S. taxes, no matter where you’re calling home.

✅ Filing Requirements

When tax season rolls around, Green Card and Passport holders use Form 1040, just like the locals. Non-resident aliens have their own form, 1040-NR. And remember, if you’ve got tax ties to a state, their rules can be a bit like the rules of a board game – they change depending on how you’re earning your bucks.

✅ Taxpayer ID

To join the tax party, you’ll need a special ID known as a Taxpayer Identification Number. It’s like your VIP pass to the U.S. tax scene. Foreign citizens can apply for an ITIN, but keep in mind, the process might involve sending your passport by mail, and it can take a while. If you’re rocking a Green Card or Passport, you’re required to get an SSN (Social Security Number) for tax filings and financial business in the U.S.

✅ Taxes

Good news! There are deals in place to ensure you’re not taxed twice. Many countries have treaties in place that let you use credits from both the U.S. and your home tax residency so you avoid double taxation.

✅ Reporting Foreign Accounts

If you’ve got a Green Card or U.S. Passport and some savings tucked away in a foreign account, there’s extra paperwork beyond the standard tax return. Even if it’s just a name on a safe deposit box, Uncle Sam wants to know. Skip the reporting, and the penalties can hit harder than you’d expect.

Taxes may seem like an endless maze of forms and jargon, but don’t worry. Our stellar team at Insogna CPA is here to help you breeze through it. We specialize in making sense of U.S. taxes for global entrepreneurs like you. No more tax headaches, just clear, straightforward answers.

Ready to untangle your U.S. tax situation?

Partnership Compliance in 2024: What Your Business Must Know

One of the most important compliance requirements for partnerships is registering with the appropriate state agency. This involves filing a partnership agreement, which outlines the terms of the partnership, with the state. In addition to registering with the state, partnerships may also need to obtain business licenses or permits, depending on the type of business they operate and the location.

Partnerships are also required to obtain a federal employer identification number (EIN) from the Internal Revenue Service (IRS). This number is used to identify the partnership for tax purposes, and partnerships are required to file annual tax returns with the IRS. Partnerships are not taxed at the entity level; instead, the partners report their share of the partnership’s income or loss on their individual tax returns.

Another compliance requirement for partnerships is maintaining accurate records. Partnerships are required to keep track of their income and expenses, as well as maintain records of any loans or investments made in the business. Accurate record-keeping is not only a legal requirement, but it also helps partnerships manage their finances and make informed business decisions.

Partnerships may also be subject to industry-specific regulations and compliance requirements. For example, partnerships operating in the healthcare industry may be subject to HIPAA regulations, while those in the financial industry may need to comply with SEC or FINRA regulations.

Finally, partnerships may also be subject to employment laws and regulations if they have employees. This includes complying with minimum wage laws, overtime laws, and anti-discrimination laws. Partnerships may also be required to provide certain benefits, such as workers’ compensation insurance, to their employees.

To sum it up, partnerships need to meet a wide range of compliance requirements, including:

✅ Registering with the state and filing Partnership Agreements
✅ Getting an EIN
✅ Keeping accurate financial records
✅ Complying with industry-specific regulations
✅ Following employment laws

Nailing these requirements not only keeps your partnership legal but also helps it thrive ethically and responsibly.

Got Partnership Compliance Questions?

Don’t stress over compliance or tax complexities! Whether you’re forming a new partnership or reviewing your current setup, we’re here to help. Reach out to us today, and let’s make sure your partnership requirements are squared away for 2024.