Many people have heard if they were affected by Hurricane Irene and they had previously filed an extension for their 2010 tax return, they now have additional time to file.  However, what many people do not realize is that this additional tax relief is only available to specific counties and municipalities that have been declared federal disaster areas.

So how do you know if your area is on this list? You can go http://www.irs.gov/ to review the latest list of counties and municipalities published by the IRS that have been granted tax relief. Below is the list as of September 14, 2011:

In Connecticut: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham;

In Massachusetts: Berkshire and Franklin;

In New Hampshire: Carroll and Grafton;

In New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren;

In New York: Albany, Bronx, Clinton, Columbia, Delaware, Dutchess, Essex, Greene, Herkimer, Kings, Montgomery, Nassau, Orange, Otsego, Putnam, Queens, Rensselaer, Richmond, Rockland, Saratoga, Schenectady, Schoharie, Suffolk, Sullivan,
Ulster, Warren, Washington and Westchester;

In North Carolina: Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Tyrrell, Vance, Warren, Washington, Wayne and Wilson;

In Pennsylvania: Bucks, Chester, Delaware, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Philadelphia, Sullivan and Wyoming;

In Puerto Rico: Arroyo, Aguas Buenas, Caguas, Canóvanas, Carolina, Cayey, Cidra, Coamo, Comerío, Fajardo, Gurabo, Humacao, Jayuya, Juncos, Las Piedras, Loíza, Luquillo, Naguabo, Naranjito, Orocovis, Patillas, Ponce, Río Grande, San Juan,
San Lorenzo, Trujillo Alto, Vega Baja, Vieques, and Villalba;

In Vermont: Addison, Bennington, Caledonia, Chittenden, Orange, Rutland, Washington, Windham and Windsor;

If your county or municipality is on the list above and you had previously filed an extension for your 2010 tax return, individuals now have until October 31, 2011  (instead of October 17, 2011) and corporations and businesses now have until October 17, 2011.

For individuals and companies that own commercial property there is now available a tax planning strategy that accelerates depreciation deductions and defers tax payments on commercial property.  A team of tax professionals, structural design experts and engineers identify and reclassify commercial building component expenses resulting in after-tax increased cash flow.

If your property has been purchased for over $700,000 within the last 17 years, or if you have spent over $400,000 in improvements or additions, the result generates a Cost Segregation Study that identifies and maximizes benefits.

We are affiliated with a company that will prepare a Feasibility Analysis to show you the benefits.

For 2010, the first-year depreciation cap for new business vehicles placed in service during the year is increased from $3,060 to $11,060 for cars and from $3,160 to $11,160 for light trucks and vans.

If you’re self-employed, for 2010 only, you can deduct eligible health insurance costs for you, your spouse, dependents, and children under age 27 when computing your net earnings for purposes of the self-employment tax.  Requirements apply.

For tax years beginning in 2010 and 2011, the Jobs Act increases the maximum Section 179 expensing deduction amount to $500,000 and the beginning of the phaseout to $2,000,000.  The amount of the available expensing election is reduced dollar for dollar as annual asset purchases rise above $2,000,000.  You cannot expense more than the amount of taxable income from active trades or businesses. 

Also, for tax years beginning in 2010 and 2011, you can elect to treat up to $250,000 of “qualified real property” as property eligible for expensing.  Qualified real property includes certain leasehold improvement, restaurant, and retail improvements property.

For parents who work or are looking for work, the expenses associated with arranging for care of children under 13 years of age during school vacation may be eligible for the Child and Dependnet Care Credit.

Here are some things to consider:

• The cost of day camp may count as an expense towards the child and dependent care credit
• Expenses for overnight camps do not qualify
• If your childcare provider is a sitter at your home or a daycare facility outside the home, you’ll get some tax benefit if you qualify for the credit
• The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income
• You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit

For more information, please give us a call.