Download the January/February 2010 PDF - Pond Trade Magazine
Download the January/February 2010 PDF - Pond Trade Magazine
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“The taking of property must be illegal<br />
under <strong>the</strong> law of <strong>the</strong> state where it<br />
occurred and it must have been done<br />
with a criminal intent.”<br />
Theft losses, like most types of<br />
losses, are usually tax deductible in <strong>the</strong><br />
year sustained. However, under <strong>the</strong> tax<br />
rules, <strong>the</strong>ft losses are actually "sustained"<br />
in <strong>the</strong> year when <strong>the</strong> pond business<br />
owner or manager discovers <strong>the</strong> loss.<br />
Thus, a <strong>the</strong>ft loss is not deductible in <strong>the</strong><br />
tax year in which <strong>the</strong> <strong>the</strong>ft actually<br />
occurs unless that also happens to be <strong>the</strong><br />
year in which <strong>the</strong> loss was discovered.<br />
Going one step fur<strong>the</strong>r, if in<br />
<strong>the</strong> year of discovery, a reasonable<br />
possibility of reimbursement for any<br />
loss exists, <strong>the</strong> deduction cannot be<br />
taken until that reimbursement is<br />
actually made or ruled out as unlikely.<br />
Remember, <strong>the</strong> basic rule states that in<br />
order for losses to be deductible, <strong>the</strong>re<br />
must be a "closed transaction."<br />
In order to deduct a <strong>the</strong>ft loss, a<br />
pond business owner or manager must<br />
be able to show <strong>the</strong>re was a <strong>the</strong>ft as well<br />
as support <strong>the</strong> amount claimed as a<br />
deduction. For a <strong>the</strong>ft loss, this means<br />
being able to show <strong>the</strong> following:<br />
• When it was first discovered that<br />
property was missing<br />
• That your property was stolen<br />
• That you were <strong>the</strong> owner of<br />
<strong>the</strong> property<br />
• Whe<strong>the</strong>r a claim for<br />
reimbursement exists, for which<br />
<strong>the</strong>re is a reasonable expectation<br />
of recovery.<br />
The cost can be steep, and in<br />
instances of employee <strong>the</strong>fts such as<br />
embezzlement, devastating. The way <strong>the</strong><br />
pond construction, maintenance or<br />
supplies operation protects itself before<br />
such losses occur, maintains insurance<br />
protection, reacts to <strong>the</strong> <strong>the</strong>ft and<br />
understands <strong>the</strong> recovery possibilities<br />
offered under our tax laws, are all<br />
important. Also important, is <strong>the</strong> wide<br />
range of professional advice available<br />
every step of <strong>the</strong> way. a<br />
About <strong>the</strong> Author<br />
Mark E. Battersby<br />
With 25 years of professional<br />
experience in <strong>the</strong> fields of taxes and<br />
finance enable Mr. Battersby to write on<br />
unique and topical subjects. Although no<br />
reputable professional should ever render<br />
specific advice at arm’s length, he does<br />
craft unbiased, interesting, informative,<br />
and accurate articles.<br />
Mr. Battersby currently writes for<br />
publications in a variety of fields. His<br />
topical columns are syndicated in many<br />
publications each week. He also writes<br />
columns for trade magazines and has<br />
authored four books.<br />
P.O. Box 527<br />
Ardmore, PA 19003-0527<br />
(610) 789-2480 or (610) 924-9157<br />
<strong>January</strong>/<strong>February</strong> <strong>2010</strong><br />
POND <strong>Trade</strong> <strong>Magazine</strong><br />
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