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Hurricanes could impact millions of Americans’ taxes

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The tens of millions of Americans that live in federal disaster areas are eligible for some relief from their taxes in the form of filing delays, and victims may be able to take a deduction from losses.

The Internal Revenue Service has automatically extended the filing deadline for taxpayers living in areas impacted by Hurricanes Helene and Milton to May 1, 2025, giving residents and businesses in those states and parts of states some extra time.

An aerial view of flood damage wrought by Hurricane Helene along the Swannanoa River on October 3, 2024 in Asheville, North Carolina. At least 200 people were killed in six states in the wake of the powerful hurricane which made landfall as a Categor (Photo by Mario Tama/Getty Images / Getty Images)

However, the extension is only for people in zip codes officially designated by the Federal Emergency Management Agency (FEMA) as a federal disaster area. 

For Helene, that includes the entire states of Alabama, Georgia, North Carolina and South Carolina, as well as several counties in Tennessee, Virginia and Florida.

THESE ARE THE MOST COSTLY HURRICANES IN US HISTORY

But the entire state of Florida has been designated a disaster area due to Milton, so every resident qualifies for that extension.

sheriff vehicle driving through flooded area in Tampa

An aerial view shows a Sheriff’s Department vehicle moving through flooded streets in Tampa, Florida, due to Hurricane Milton on October 10, 2024.  (BRYAN R. SMITH/AFP via Getty Images / Getty Images)

The Sunshine State also offers hurricane victims a rebate on their property taxes. Under the property tax relief Florida signed into law following Hurricanes Ian and Nicole in 2022, homeowners may receive a prorated refund on their property taxes if a residence was rendered uninhabitable for at least 30 days by either of the deadly hurricanes.

FLORIDA SMALL BUSINESSES HAMMERED BY BACK-TO-BACK HURRICANES: ‘JUST GOING TO SAY A PRAYER’

Under federal law, victims that live in federally-designated disaster areas are also able to deduct losses that are not covered by insurance – but the details are complicated, as The Wall Street Journal points out.

workers searches through rubble in Florida after Helene

Roys restaurant worker searches through the rubble at the demolished restaurant after Hurricane Helene landed in Steinhatchee, Florida, Friday, Sept. 27, 2024.  (Willie J. Allen Jr./Orlando Sentinel/Tribune News Service via Getty Images / Getty Images)

Michael Shaff, an attorney at Foundation Law Group, emphasized to FOX Business that victims must live in a federally declared disaster area in order to claim a deduction on losses, and that individuals and businesses only have two years to do so.

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Shaff warned, “Whatever kind of recovery you get – whether it’s from the government or from an insurance company – you have to keep an eye on how long you have to replace it, and what you can replace it with.”

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These are 3 big things we’re watching in the stock market this week

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A security guard works outside the New York Stock Exchange (NYSE) before the Federal Reserve announcement in New York City, U.S., September 18, 2024. 

Andrew Kelly | Reuters

The stock market bounce last week showed once again just how dependent Wall Street has become on the whims of the White House.

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These U.S. consumer stocks face higher China risks

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Apple iPhone assembly in India won’t cushion China tariffs: Moffett

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Street's biggest Apple bear says a production move to India is unrealistic

Leading analyst Craig Moffett suggests any plans to move U.S. iPhone assembly to India is unrealistic.

Moffett, ranked as a top analyst multiple times by Institutional Investor, sent a memo to clients on Friday after the Financial Times reported Apple was aiming to shift production toward India from China by the end of next year.

He’s questioning how a move could bring down costs tied to tariffs because the iPhone components would still be made in China.

“You have a tremendous menu of problems created by tariffs, and moving to India doesn’t solve all the problems. Now granted, it helps to some degree,” the MoffettNathanson partner and senior managing director told CNBC’s “Fast Money” on Friday. “I would question how that’s going to work.”

Moffett contends it’s not so easy to diversify to India — telling clients Apple’s supply chain would still be anchored in China and would likely face resistance.

“The bottom line is a global trade war is a two-front battle, impacting costs and sales. Moving assembly to India might (and we emphasize might) help with the former. The latter may ultimately be the bigger issue,” he wrote to clients.

Moffett cut his Apple price target on Monday to $141 from $184 a share. It implies a 33% drop from Friday’s close. The price target is also the Street low, according to FactSet.

“I don’t think of myself as the biggest Apple bear,” he said. “I think quite highly of Apple. My concern about Apple has been the valuation more than the company.”

Moffett has had a “sell” rating on Apple since Jan. 7. Since then, the company’s shares are down about 14%.

“None of this is because Apple is a bad company. They still have a great balance sheet [and] a great consumer franchise,” he said. “It’s just the reality of there are no good answers when you are a product company, and your products are going to be significantly tariffed, and you’re heading into a market that is likely to have at least some deceleration in consumer demand because of the macro economy.”

Moffett notes Apple also isn’t getting help from its carriers to cushion the blow of tariffs.

“You also have the demand destruction that’s created by potentially higher prices. Remember, you had AT&T, Verizon and T. Mobile all this week come out and say we’re not going to underwrite the additional cost of tariff [on] handsets,” he added. “The consumer is going to have to pay for that. So, you’re going to have some demand destruction that’s going to show up in even longer holding periods and slower upgrade rates — all of which probably trims estimates next year’s consensus.”

According to Moffett, the backlash against Apple in China over U.S. tariffs will also hurt iPhone sales.

“It’s a very real problem,” Moffett said. “Volumes are really going to the Huaweis and the Vivos and the local competitors in China rather than to Apple.”

Apple stock is coming off a winning week — up more than 6%. It comes ahead of the iPhone maker’s quarterly earnings report due next Thursday after the market close.

To get more personalized investment strategies, join us for our next “Fast Money” Live event on Thursday, June 5, at the Nasdaq in Times Square.

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