Author: brooklyncovered1

An independent insurance agent and broker, and income tax preparer who combines over 37 years in financial services with experience as a bank mortgage administrator and Community Relations Manager.

“Daddy, God Is Crying”

We drove home, and the next morning when I went to call the client to tell him I would be late, I discovered I’d failed, in my rush to pack up the office and go home, to put the file in my bag.

9/11

Thirteen years ago today, I had an appointment to write a new client a Renters Insurance policy. His office was located in one of the Towers. The appointment was for 8:30 am.

9/10

I never made it to the appointment, because the night before, Ashley and Debbie (may she forever rest in peace), were involved in a collision at the Empire Boulevard McDonald’s at the drive through. The car in front of them, having left the drive-though window, suddenly reversed and ran into them. Why? Because the unlicensed driver, driving her aunt’s uninsured car without the aunt’s permission, was angry that her order was wrong.

They were both okay, but later that evening as I stood in front of the Met Supermarket taking pictures with a camera, a hot rain began to fall. It was as though a monsoon swept through the area.

“Daddy, God is crying”

Soaked to the skin, and angry about the accident, I got in the car and prepared to drive, when from her car seat, seven-year-old Ashley said, “Daddy, God is crying.”

My immediate response, “Yeah well right now, I’m crying too. I’m going to be late for the appointment, I have to take the car to the shop … wait, what did you say?”

“Daddy, God is crying.”

I looked at her mother, whose eyes were just as wide as mine.

“Why baby?”

“I don’t know why. I just know God is crying. I guess he’s really sad.”

We drove home, and the next morning when I went to call the client to tell him I would be late, I discovered I’d failed, in my rush to pack up the office and go home, to put the file in my bag.

By the time, I dropped them off at work and school, and left the car with Ernie, our mechanic, it was already 8:00 am, so I knew I was probably going to lose the case. I decided to go to the monthly PA President’s meeting at the District 22 office.

When I arrived at the District Office, I understood why God cried.

And the client I was supposed to meet? He woke up late, and came out of the train station, only to join thousands running from the site. As he ran, looking back to the floors where his company and friends were burning, he said to himself, “I hope that insurance guy made it out okay.”

My assignment wasn’t up.

11/11/02

I couldn’t understand why until one year and one month later, when Debbie died, leaving me a single parent to care for our child. Ashley and I cried.

So I still thank God for sending us the accident the night Ashley said, “Daddy, God is crying.”

Take a moment today and tell someone you love them, you cherish them, you value them, and they bring joy to your life.

You may never get another chance for a last kiss and hug.

 

Baseball’s Hold Harmless

Baseball, Hot Dogs, Apple Pie, and Hold Harmless Agreements

There is a story coming out of Lakewood, NJ, about 10-year-old Alexis Pavlinec who, while attending a BlueClaws minor league baseball game with her parents on Sunday, was struck in the face by a foul ball. The young lady suffered a fractured skull, and may lose her sense of smell.

She wasn’t even the stands at the time. She’d just finished eating a slice of pizza in the food court.

Did Someone Say Lawsuit?

Now, I know many of you are thinking she and her family are going to win a huge lawsuit from the team. Sorry to say it, but a winning lawsuit probably won’t  happen in your lifetime.

Or your grandchildren’s.

I want to you look at the back of your ticket the next time you attend a baseball game, go to a movie, or attend the opera.  See those tiny squiggles on the back of your ticket, so tiny even people blessed with 20/20 vision have to squint. Well, that is the proverbial fine print. And if you look really hard, you will usually see a section named “Warning.”

A Day At MCU Park

I and several other business associates had the pleasure of attending the short-season minor baseball game between the Brooklyn Cyclones and the Tri-City Valley Cats at Brooklyn’s MCU Park, located in Coney Island, Brooklyn.

We were guests of Anne Marie Stanislaus, Broker and Owner of Reserved Realty, L.L.C., on the Party Deck at a BNI Networking Party. Those of you who are regular readers of BrooklynCovered.com know Anne Marie is always good for a tough insurance question, and a pizza on me at Cataldo’s Restaurant. This time, however, the food was on her and her fellow BNI members.

While we were talking, (and eating), the Cyclone batter at the plate cracked a foul ball all the way to the suite level, where we were eating and cheering.

Sensing the opportunity for another insurance lesson, I said, “Anne Marie, you’d better watch out for those foul balls.”

“Why?” she asked. “You know I want to catch one.”

“Well, don’t miss the catch. If you do, and a ball smacks you upside the head, you can’t sue the Cyclones, the Mets, the City of New York, nobody.”

“You’re lying to my face, Greaves.”

Let’s Go To The Video … I Mean Ticket

So I took out my ticket, and squinting like Mr. Magoo, began to read;

“WARNING – The ticketholder assumes all risk, danger and injury incidental to the game of baseball or other event and all warm-ups, practices, competitions, entertainment and promotions associated therewith  at all locations in and around the ballpark and surrounding areas and parking lots, whether occurring prior to, during or subsequent to the playing of the game or other event, including (but not limited to ) the danger of thrown bats, fragments thereof, and thrown , propelled or batted balls and other objects, and agrees that no persons or entities (including but not limited to Sterling Mets, L. P. , Sterling Mets Front Office, L.L.C., Sterling Mets Operations, L.L.C., Queens Ballpark Company, L.L.C., Sterling Facility Services, L.L.C., CF Hospitality, L.L.C., Brooklyn Baseball Company, L.L.C., the City of New York,, NYCIDA, St. Lucie County, and their respective agents, owners, officers, employees, affiliates and contractor(s) are liable for any injuries, death, or loss of property resulting from such causes, and releases and hold harmless all such persons and entities. “

“And you’re saying all that to say, what?”

“Foul ball screaming into the stands at 200 mph connects with your head and you die, they have no liability. Player loses control of their bat and it flies into the stands and breaks your face, they have no liability. A ball leaves the ballpark and puts a dent in or shatters the windshield of your new car in the parking lot, they have no liability. You get mugged in the parking lot, or your car is broken into or stolen from the parking lot, well, you have no coverage. Since you activated this ticket by presenting it for admission to today’s game, you’ve agreed to hold all of those organizations harmless for just about anything that could happen to you while you’re enjoying a day at the ballpark. And you weren’t even read your rights.”

What Are The Odds?

“So a little girl  could suffer the loss of her sense of smell and possible disfiguration for the rest of her life? And the family has no legal leg to stand on?”

“Yep. Let’s just be thankful she didn’t die from the impact. According to Major League Baseball, there are 35 people are injured by foul balls for every one million visitors who attend the games. Not bad odds, but if it’s you or someone you love who’s hit, the results could be devastating.”

“That’s not right, Greaves.”

“Yes, and I’m 5′ 10″ instead of 6′ 2. Life is just unfair that way.”

So, the next time you attend an event, take a moment to take a hard look at the back of your ticket, and see the rights you’ve given up just to be there. And watch out for those foul balls.

I Am Eustace L. Greaves, Jr.

Please indulge me this opportunity to publish some of the poetry / music created in my soul. I will revisit this space / place / womb often, making a slight change here, adding a sentence there. The SEO results will be lousy, but I’m just happy to possess the canvas upon which to place my creation.

I promise you insurance, insurance, and more insurance, in the blog posts to come.

Thank you,

Eustace L. Greaves Jr.
August 28, 2014
2:33 pm

I Am Eustace L. Greaves Jr.

I am not the man a woman settles for.

I am the man a woman who, knowing herself, prays will
choose,
love,
provide for,
cherish,
desire,
want,
worship with his whole heart,
respect,
pray for and with,
grow strong in the Lord with,
and give God thanks for,
her.

I have not  seen my best days I haven’t created them yet.

My greatest accomplishments are waitin, needing me to realize, and fully understand, God is in me, and because this is truth, nothing is impossible for me.

I am responsible for everything in my life, the good, the bad, the exuberant, the sad. Every thought, every deed is my responsibility.

I no longer give credence to the old excuse, “Be patient, God’s not finished with me yet.”

It is nothing more than a lie created by those who accept failure in their life by failing to even try. They’ve made it their home address.

I will waste no time visiting them where they live.

I know God equipped me, from the moment  I was born , with everything I’d ever need in life to become who I am meant to be, to achieve the goals I pray for, and leaving my knees, work for.

I am the man a woman will regret letting go, wishes she hadn’t let out of the door, despite whatever fears she may have.

I am not the man a woman settles for.

I am the man with whom she prays she’ll settle down. Sleep besides, go the the movies, the plays, midnight cruises with, or just sitting at home next to each on the couch with.

I am the man she prays she can love, and will love her the rest of her days.

Income Tax Returns Aren’t Toilet Paper

“When did the preparation of income taxes become a commodity item carrying the same importance as a roll of toilet paper? What’s next, buy computer time and prepare your return yourself? The business of preparing income taxes is an important calling, and your choice of an income tax preparer should neither be based solely on how big a refund they promise to get you, (which is illegal, by the way), nor by how little they charge. Instead, ask your preparer the following questions:”

Income tax returns are not toilet paper.

Today, while driving through my home city of Brooklyn, NY, I passed the office of a national income tax preparation franchise. They had a sign outside their office that read, “$50.00 off your income tax return today!!”

Get Your Toilet Paper Here!

When did the preparation of income taxes become a commodity item carrying the same importance as a roll of toilet paper? What’s next, buy computer time and prepare your return yourself? The business of preparing income taxes is an important calling, and your choice of an income tax preparer should neither be based solely on how big a refund they promise to get you, (which is illegal, by the way), nor by how little they charge. Instead, ask your preparer the following questions:
  • How many CPE classes did you attend last year?
  • Which, if any, professional organizations do they belong to?
  • What percentage of the returns you prepare are audited each year?
  • Do they have a Federal PTIN?
  • Do they have a New York State Tax Preparer Certificate of Registration?
  • If they must relocate their office, how will they inform you of their new address?
  • For how many years have they prepared income taxes?
  • Are they aware of the EITC Due Diligence rules?
  • Will you sign my income tax return?
  • What is their Privacy Policy regarding the protection of your personal information?
  • Do they make up their own itemized deductions so you will receive a larger refund?
  • How many times have they been cited for filing fraudulent income tax returns?

Bottom line, stop worrying about today’s sale on income tax preparation. I’d be more concerned about the skills and professional manner of who is preparing my return.

In addition to providing his clients and seminar attendees (many of whom become his clients), with insurance and income tax strategies and solutions, Eustace L. Greaves Jr.,  also prepares income tax returns for over 150 of his clients annually. To contact Eustace L. Greaves Jr., about his insurance and income tax services, feel free to call him at 718-783-2722, or by email to [email protected].

Farewell, Sweet Cuddle Time, Farewell

(Editor’s Note: You may be wondering why a blog dedicated to providing information about insurance,  personal income tax planning and preparation, and NYS Vehicle and Traffic Laws deals with “Cuddle Time. ” Trust me, you’ll get the ‘coverage’ connection. Well, I hope you do.  Besides, who can’t use a good laugh now and then? Enjoy! – Eustace)

Guys, It’s Time To Be Honest About Cuddle Time

Men. Suddenly we’re turning 40, 50, or even 60 years of age, and we, well at least some of us, must make peace with a sad reality: What we once did three, four, maybe even five times a night with gusto, flair, and concerns only about our own satisfaction, we now happily enjoy with true shared intimacy maybe three really good times each month.

With ample time in between for rest, recovery, reflection, relief,  and many prayers of  thanks to whichever Creator we worship that our efforts didn’t leave us in need of skilled nursing care.

But with this new reality, we also come to realize we always seem a step behind, a step too slow, just missing the boat, singing off-key, or didn’t set the hook fast enough. And now, we’ve gone and lost the big one – cuddle time.

Why is it when men of a certain age finally discover the power of the cuddle, (and yes, there is power in “The Cuddle”), their wives no longer need them for body heat?

And what vile, heinous, and foul construct stole our spouses and lovers affections, well, in some cases tolerance, you ask?

None other than the electric blanket.

That’s right. The electric blanket.

America is not the Great Satan, and sorry Theo Epstein and Boston Red Sox nation, the New York Yankees are not the true Evil Empire. No my friends, it’s the electric blanket manufacturers of the world who are creating all the problems for us men. That’s right  electric blanket manufacturers, I’m talking to you, I’m calling you out, you and your evil intimacy-destroying creations.

Oh, The Humanity!

Just imagine the workers who assemble these cuddle time-destroying creations. I’ve heard tales of women line workers raucously laughing, knowing yet another member of their sisterhood will sleep in vengeful comfort, while their male counterparts weep bitter tears at their plight, forced to assisting in the birthing of these heat-destroying engines of destruction of the last bastions of male joy and happiness.

All the Viagra and Cialis in the world cannot convince a woman enjoying the sweet, moist warmth of a Turbo 2000 Sweet Heat model to turn it off and let her husband turn her on. No, after years of neglecting her needs for truly emotional attention and connection, and too many half-hearted or failed attempts at, umm, humor, she’s gone and found a new electric lover which gives her the full cuddly body warmth she used to beg for. Now she plugs it in the wall, spins the dial to the desired level of warmth and voilà!, she doesn’t need her man anymore. And her comfort cover doesn’t complain about the texture of her dragon feet or her talon-like toenails.

And what’s really terrible is we are paying the electric utility bill for her guilty, guilty, sweet heat pleasure.

So, do we pin our hopes  on these soft and fuzzy destroyers of our remaining years of true intimacy constantly tripping the circuit breakers? Do we bring offerings to Al Gore begging him to declare them creatures of evil, possessing incontrovertible carbon footprints? Will this make wives and girlfriends repentant for their love of deviant coverage, even as they shed tears of sadness while packing their electric blankets away for the purpose of creating a more sustainable planet?

Oh yeah, that would work for me. And let’s tell the truth, it would work for a bunch of you guys too.

What About The Dragon Feet?

Is there a downside to our prayers? Yes, for once we win the recall of the accursed cuddle time-destroying covers, or our darlings sadly pack them away forever, our “on” switch must always be primed for dial-up.

Always on. Dialed up to whatever setting she wants. Be it cuddle, muddle, or just befuddled. #Cuddle Time Joy!

Even if she’s got dragon feet with talons for toenails.

Eustace L. Greaves Jr.,  is a Brooklyn-based business owner who provides his clients with integrated insurance, and income tax solutions and strategies. He is the author of BrooklynCovered.com and would really appreciate your subscribing to this blog, and sharing it with your social media families.

Illegal Apartments in NYC: How Many More Must Die?

“What’s even worse is that this building was had complaints about illegally converted apartments way back in 2006. Unfortunately, according to records, the New York City Department of Buildings representatives couldn’t gain access to the building to verify the illegal renovations, and properly cite the owner (s).”

Illegal Apartments In NYC

On page 28 of  today’s New York Daily News, the article, “Blaze In Illegal Apartment Kills Woman, 82.” The article details how the body of Ho Yukkuen was found inside a bedroom, in an illegal apartment in a Sunset Park residence.
What’s tragic is firemen couldn’t reach her in time because of window bars.

What’s even worse is that this building had complaints about illegally converted apartments way back in 2006. Unfortunately, according to records, the New York City Department of Buildings representatives couldn’t gain access to the building to verify the illegal renovations, and properly cite the owner (s).

So an 82-year-old woman loses her life, maybe screaming for help in vain while trying to escape her prison.

Why Was An 82-Year-Old Woman Living In An Illegal Basement Apartment?

Let’s talk truth. The lack of truly affordable housing is literally killing members of our citizenry. I find it hard to believe an 82-year-old woman couldn’t be placed in some form of affordable senior housing facility. At worse, why couldn’t she find placement in a regular, legal apartment?

Greed. That’s right. Greed.

We are erecting condominiums which many hard-working New Yorkers cannot afford to buy, and not requiring at least 40% of the apartments be affordable for people with annual incomes between $35,000 to $60,000.

Homeowners in communities like Bedford-Stuyvesant, who purchased their homes for $10,000, $50,000, and $300,000, who fought for years for better schools, libraries, and sanitation and police services, only to cut and run when investors, both foreign and domestic, show up at their door, promising them one million dollars and up for their now-beautifully restored brownstones. And many of these former owners rue the day they sold.

But what happens to the elderly tenants in these buildings, many of whom lived with the former owners like family for decades, and don’t have leases, or protections through rent control and rent stabilization laws? Where do they wind up? Do they sleep outdoors in the winter when the bitter cold is a constant danger? Or, are they fortunate enough to have family who’ll take them in, or blessed to be accepted into a senior living facility?

I only know this: The overwhelming majority of those elected to the New York City Council, and other government positions ran on platforms promoting the creation of affordable housing. Let’s hope they remember their promises to the people of this city, and not any corporate masters who helped them get elected. I know that I and others won’t forget the promises they made to address the real housing needs of all New Yorkers.

Finally, I hope this new crop of politicians/public servants finally pass legislative giving the Department of Buildings the real power it needs to gain access to any building in New York City to discover and address illegal apartment conversions and other matters of safety for its tenants and the surrounding community.

With this type of power, perhaps Ho Yukkuen would be alive today.

Eustace L. Greaves Jr., LUTCF is a business owner who since 1995 has provided his clients with integrated insurance and income tax strategies and solutions. He is also a firm believer in a New York City building inspection program which will root out the bad players, thus keeping all of us safe. You can reach him by telephone at 718-783-2722 and by email at [email protected] .

 

New Changes to Coastal Homeowners Insurance

Now the insurance situation, is more dire not just for new homebuyers but for existing homeowners too. In between bites, I reminded Anne-Marie about how Hurricane Irene in 2011, and the big momma, Hurricane Sandy in 2012, gave insurance companies greater insight into number of homeowners risks they insured in certain areas. And it is these new insights which have given rise to newer realities in homeowners insurance.

It’s amazing. Whenever I read or make a presentation about the new changes happening in coastal  homeowners insurance here in New York State’s Downstate Region, (Brooklyn and the four boroughs, Nassau, Suffolk, Westchester counties), I usually run into one of Brooklyn’s leading real estate brokers the very next day. And they wrangle a free lunch out of me.

Talking Coastal Homeowners Insurance with Anne-Marie Stanislaus of Reserved Realty LLC

Late last month, I had the pleasure of enjoying another terrific pizza with Anne-Marie Stanislaus, one of New York City’s leading independent Real Estate Brokers, and the Owner and Principal of Reserved Realty LLC.  We met at the number-one Italian restaurant in Prospect Heights, the world-famous Cataldo’s Italian Restaurant and Pizzeria, at 554 Vanderbilt Avenue, between Dean and Bergen Streets. The first question she asked was “Eustace, I know we talked about this last year, but what’s going on with the coastal homeowners insurance business in Brooklyn? Companies are not just refusing to write certain types of houses. I’m getting calls from clients complaining their insurance companies, after decades without claims or late payments, are cancelling policies in certain areas like they had the plague! And not just in Brooklyn, mind you, but throughout the Downstate region.”

We’d had a similar discussion back in November of 2012, right after Hurricane Sandy, which I detailed in an earlier post, “Coastal Homeowners Insurance, Part 2.9.” Back then, when life seemed simpler,  we were more concerned about changed real estate practices as it pertained to new sales.

The Latest Twist In Coastal Homeowners Insurance

The insurance situation is becoming more difficult not just for new home buyers but for existing homeowners too. In between bites, I reminded Anne-Marie about how Hurricane Irene in 2011, and the big momma, Hurricane Sandy in 2012, gave insurance companies a major case of the willies and greater insight into the number of coastal homeowners insurance risks they insured in certain now-hazardous areas. It is these new insights which created newer realities in coastal homeowners insurance.

Take It Back A Mile

First, when certain companies decided they no longer wanted to insure risks within one (1) mile of a tidal coastline, they just sent the affected policyowners a letter which basically said, “Thank you for being our homeowners client for the past  15, 20, or even 30 years. We also appreciate your not presenting us with any claims during your years with our company. We changed our underwriting guidelines, and since you no longer fit or match them, you’re no longer one of our homeowners insurance clients effective (You fill in the date.).

“Thank you, and don’t worry, you can still keep your auto, life, and whatever else you have with us. We just don’t want the house anymore.”

Now, just for the record, while most insurance companies pulled their coastal boundary line to a distance of at least one mile from the tidal coastline for dwellings, there are those companies who will continue to honor their commitment to their clients, so long as they don’t lapse their policies, submit some really dubious claims, or decide they can make some side money by turning their legal two-family home into an illegal three, four, or even more family house.

Many companies, however, are simply dropping their clients, and, just like that, the homeowner must seek and secure new coverage for their home.

There’s a new twist in this tale of woe, however: Now some insurance companies are cancelling policies if they are within one mile of any body of water.

For example, I’ve recently written a new policy for a homeowner who lives more than one and one-half miles from the tidal coastline, but within one-half mile of the tip of Brooklyn’s Paerdegat Basin.

A property on the western side of Flatlands Avenue. One which suffered absolutely no wind or flood damage during Hurricane Sandy.

He recently received a cancellation letter letting him because of changes to what the company felt was a coastal risk, his policy was being non-renewed. A policy he’d had for 28 years. Claim-free.

And now, I’m going to write his neighbor a policy, since the same company just sent him his non-renewal letter.

So Anne-Marie looked at me like I had two heads. “So wait a minute,” she asked. “Now we’ve got to know how far a property is from any body of water before we try to market it? When will this madness end?”

“Who knows? Probably when enough disaster-free and thus heavy-claim time passes. ”

She looked at me and said, “Well, that’s not so bad then.”

“Sure”, I said, “Even though when FEMA finishes remapping this region, probably either in late 2014 or by mid-2015,  mandatory Flood Insurance policies with premiums in excess of $2,000 and $3,000 will create new problems for homeowners now remapped into AE and VE zones…”

“Enough!” she yelled. “For that Greaves, I want more pizza! And no more insurance talk!”

And the second pie was even tastier than the first.

You can reach the beleaguered  Anne-Marie Stanislaus at 917-887-7468. She and her team at Reserved Realty will do a fantastic job of  either helping you find your dream home, or marketing your current home and apartment rentals. You can always reach Eustace Greaves Jr., LUTCF  by telephone at 718-783-2722, or send him an email to [email protected].

Disability Insurance and Mack Trucks

“Now, there are two types of company-sponsored disability plans, short-term and long term. As the name implies, short-term disability insurance usually replaces all or a portion of your income for a short period of time, usually, six months. Long-term disability, if the company provides such a benefit, will usually kick in once the short-term plan ends.”

The Mack Truck that hits you doesn’t always kill you…

I recently met with a client to review his financial portfolio. When the subject of disability insurance came up he scoffed at any need for further review as he,  “…Got a great plan at work. I’m not sure of all the details, I just heard it’s a great plan.” Since he brought his company benefit booklet with him,  we took a few minutes to see just how terrific it really was.

How many types of company-sponsored disability insurance plans are there?

There are two types of company-sponsored disability plans, short-term and long-term. As the name implies, short-term disability insurance usually replaces all or a portion of your income for a short period, usually, six months. Long-term disability, if the company provides such a benefit, will usually kick in once the short-term plan ends.

Are there any benefit limitations with these company-sponsored disability insurance plans?

One of the major problems with these plans are the limitations placed on your monthly benefit once you exceed a certain monthly income. A common benefit limit is 60% of income, up to $2,500.00 each month. This means if you earn an annual income of $50,000, for example, your monthly income is $4,166.67. When we calculate 60% of $4,166.67, that equals exactly $2,500.00. Which is great if you earn $50,000.00 annually. The problem begins when your annual income exceeds $50,000. If, for example, you earn $100,000.00, your greatest benefit will stay at $2,500. Meaning you are digging a deep financial hole with every company-sponsored disability income check you receive.
My clients’ income hovers around $75,000 each year.
Also, keep in mind these are company-sponsored plans. Unless they are part of a collective bargaining or other contractual agreement, there are absolutely no guarantees the company will provide these plans forever. Due to current economic conditions, several companies have changed or even discontinued company-sponsored health, disability and even life insurance programs to save money and keep the company afloat. Even in those cases where the plans were not discontinued, employees are expected to pick up more of the cost, or accept changes such as higher deductibles, and in some cases, new providers. Several well-known firms took the step of freezing management pensions and offering those affected 401(k) plans.In the case of my client, we agreed to revisit the subject as soon as he and his bride took time to revisit their budget.You see, his company-sponsored plan provided only short-term disability insurance coverage, without a bit of long-term coverage.

And the Mack Truck doesn’t always kill you.

Make it an outstanding day.

Eustace

Eustace Greaves  Jr., LUTCF is the Owner and Principal of Greaves Financial Services and The Bridge Insurance Agency  in Brooklyn, NY. You can reach him by telephone at 718-783-2722, or by email at [email protected] .

Renters Are Property Owners Too | E. Greaves Jr.

“Suddenly, reality sets in and they realize they could actually need to insure their belongings for at least $40,000 to $50,000. And what would it cost them for this coverage? In most cases, especially should you maintain a great credit score, usually no more than one (1) or (2) dollars a day.”

While The Renter Slept…

A Monday morning about three (3) years ago came with a huge surprise.

A slightly frantic business associate called first thing that morning. During the weekend, while taking a middle-of-the-day nap in her home, she awoke to find herself face-to-face with a burglar. Thankfully he didn’t harm her physically, but he stole her laptop. It took a while before she felt comfortable and safe in her own home again.

The first and most painful question she asked me was, “Eustace, Does my landlord’s insurance cover this loss?” Sadly I had to tell her, “No, your landlord’s insurance literally stops at your door.  If you don’t own a Renters Insurance policy, you have no coverage.”

Then she asked if this was the coverage I tried to convince her to purchase when she first moved into her apartment. Again, sadly, I told her yes. But the upcoming vacation was more important than paying for Renters Insurance.

To her credit, she didn’t say, “That’s not fair.” She simply accepted she lacked coverage. We spoke for a while and then ended the call.

I Don’t Like Those Calls

Losses to the property of renters many times each day and, based on current economic conditions, will continue to increase. The losses are caused by burglaries, robberies, fires, building collapses and lawsuits. All renters must understand this fact: Your landlord’s policy protects them should they lose their property to fire theft and negligence. Why don’t you do the same for your property and way of life? If you don’t own Renters Insurance, you stand to suffer disruptions to your daily life without the benefit of receiving the money you’ll need to rebuild your life.

Usually, when I speak to clients about their Renters Insurance needs, they think they only need about $10,000.00 of coverage. So I play a game of I created called “How much Renters Insurance Will I Really Need To Replace Everything I Own?” with them.

I take out a piece of paper, and ask them, for example:

  • How much did the fur coat cost?
  • What about the new Nikon or Canon camera with all the gadgets?
  • What about your laptop, big screen TV, and home theatre and stereo systems?
  • What kind of clothes do you have in your wardrobe and what is the value of all of your clothing, down to the last sock?
  • Do you sleep on bed sheets? If so, what would you need to replace every sheet, pillowcase, bath towel, face cloth?
  • What about the china, silverware, flatware, and regular dishes.
  • How much did you spend on the furniture in your home?
  • How much did you spend on your laptop? (My friend lost a top-of-the-line MacIntosh.)
  • How much jewelry do you own?

Special Questions For The Ladies And The Men

Ladies must answer questions about the value of their shoes and handbags. And don’t worry, men have their own special questions about the value of all the replica football, basketball and baseball jerseys in the closet, in their dresser drawers, on the chair, and under the bed. And their baseball caps. And the expensive sneakers. And no, I don’t believe sneakers should be addressed with proper names until they can have their lifts replaced like Loubitinis (Yes, I know that isn’t how you spell it!).

Guess what? I didn’t even mention your possible need for off-premises theft. You know, for when someone snatches the valuable electronics out of your hands on the street, or when you “just take a minute” to get another latte at the coffee shop and return to your table to find your laptop, phone and wallet stolen.

The Game Is Really Easy To Master

Suddenly, reality sets in and they realize they could actually need to insure their belongings for at least $40,000 to $50,000. And what would it cost them for this coverage?  In most cases, especially should you maintain a great credit score, usually no more than one (1) or (2) dollars a day.

Just $365.00 to $730.00 each year.  And some people, like college students on a budget, even less. Think the cost is too high? Well, how much do you spend everyday on coffee you could make at home? Could you eat out at least one or two less meals each week?

Some Tips On Securing Your Home and Your Possessions:

  • Do a complete, ‘Down to the last sock,’ inventory of all of your personal belongings. If you don’t have Renters Insurance and try to claim your losses on your income tax return, the IRS will need you to provide proof of ownership.
  • Go to your local police precinct and see what anti-crime products are available to you. The best part is, they tend to be free. You just need to simply ask.
  • Make sure that all of your electronic devices, be they I-Touches, smart phones, or laptops, have strong passwords.
  • Buy “Lojack for Laptops” and install it on your laptop. It only costs about $29.99.
  • Purchase and use a security cabling system for your desk computer at home and laptop computers, whether at home, on campus, or at the local library.
  • In case of loss to your computers, keep up-to-date backups in a secure location.
  • Secure your home against illegal entry using Fire Department approved window gates.
  • If you can, install a fire and burglar alarm system.
  • Keep windows and doors locked when you are away, and secured when you are at home.
  • It’s nice to be neighborly, but don’t feel obligated to invite the neighbors in for a party. Some of them may want to continue the party while you are at work.
  • On occasion, vary the times you leave for work and come home.
  • Don’t put your vacation plans on Facebook or any of the other social media. Thieves love to troll these sites to see just who is dumb enough to tell them when they can come and steal.
  • Finally, buy Renters Insurance. Lots of it.

For guidance in setting up a personal home inventory, feel free send me an email at [email protected],  or send a stamped, self-addressed envelope with 86¢ postage addressed to for a copy of Travelers Personal Inventory brochure. You can even stop by the office and ask for a copy of the brochure.

While it was too late for my friend to benefit from owning this coverage, your luck may have held out until now. Call me at 718-783-2722 and I’ll be glad to give you a Renters Insurance quote designed to fit your needs, and your budget.

Eustace L. Greaves Jr. is a business owner providing his clients with insurance and income tax strategies and solutions. To reach Eustace by telephone, just dial 718-783-2722. Or, you can send an email to him at [email protected].

Charitable Giving Rules | Eustace Greaves Jr.

The average tither or charitable donor making their gifts using checks or cash will find themselves facing massive tax penalties at audit if the charity receiving the gift fails to comply with one of the simplest charitable giving rules.

Why You Should Know The Charitable Giving Rules 

The average tither or charitable donor making their gifts using checks or cash will find themselves facing massive tax penalties at audit if the charity receiving the gift fails to comply with one of the simplest charitable giving rules.

Know The Substantiation Rules Or Suffer The Loss.

Whether you tithe for church, or make charitable donations to other local charities, you must know be aware of the need to substantiate your charitable donations, especially for those gifts in excess of $250.00. While most taxpayers keep copies of their cancelled checks used for their gifts, it is not always enough. Again, for gifts in excess of $250.00, the taxpayer should request and receive a letter acknowledging their charitable contribution (s)  from their church or other charitable organization. This letter, like many I’ve seen from clients while preparing their income tax returns this year, must be on the charity’s letterhead. The date on the letter must precede the date the taxpayer files their return (more on this later). The letter must clearly state the amount donated whether the gift was given in one lump sum, or over the course of the year. Several churches provided a weekly accounting of their member’s giving in their charitable giving letters. Most even included an enlightening Bible verse.

While all of these are great, and required, most of the acknowledgement letters I’ve seen this year fail to include a key requirement of the charitable giving rules.

One Of The Charitable Giving Rules Should Wake You Up At 3 AM

Out of the 32 clients with itemizable charitable gifts this year, only three had the most important line on their receipts or letters of thanks. What’s the line?

The simple statement which reads, “No goods or services were provided by the organization in return for the contribution.”

What’s that you say? I must be kidding, you say?

I am not kidding.

No matter what shape or form your letter of acknowledgement may take, when it lacks a statement clearly stating the gift was given for no reason other than the desire to give, you are actually unable to legally take the deduction for the cash or checks you donated. Your letter is in violation of IRS regulations.

How Would The IRS Find Out?

Several new clients were referred to me this year. One such client had the temerity to tell me it was no big deal, there was no way the IRS could ever check everyone’s charitable giving letters. So I told this client the story about the Durden case (Durden, T. C. Memo 2012-140).

In this case, the taxpayers entered charitable deductions on their Schedule A totaling $25,171. Most of these deductions were made by check to their church. Included in their records were their cancelled checks and an acknowledgement letter from the church.

At audit, the IRS disallowed their deduction because their letter lacked, that’s right,  you guessed it, a statement verifying neither goods nor services were given in exchange for their donations.

So, they went back to their church and got a second letter containing the required statement. They thought just getting another letter, in the proper format, would solve all of their problems.

Wrong.

The IRS rejected the second letter. Why? It did not meet the contemporaneous requirement. In order to meet this requirement, the letter had to have been received by the taxpayer by the earlier of the date their return was filed, or the return’s due date, including any legal extensions. The Tax Court agreed with the IRS. The deduction was disallowed. The taxpayers were slapped with additional taxes, penalties, and interest.


So, of course my new client says “Man, that’s no big deal. One family? That’s nothing.”

Sure. Unless you were also a member of their church who itemized their charitable donations on their Schedule A. See, the IRS knew just where to look.

Look, I don’t go fishing to show off my newest lures. I want to eat fish. I’m going to the lake, stream, or part of the shore where those babies are biting.

It only takes one return for the taxing authorities to discover new reasons to open further investigation.

The $100 Bomb.

If you think you only have to worry if you give small amounts, well, you should know me better by now. You know I’ve got another true story for you.

Several tax seasons ago, a good client of mine asked me include a donation she’d made to a friend’s church. She’d gone to hear the friend sing at a special church service, and her spirit was so moved by her melodious tones, she dropped $100.00, in cash, into the Special Offering plate.

And believe me. I know this lady. When she says she gave $100.00, well, it’s gospel.

Now, she gave me the church’s name, but lacked written proof she’d donated the $100.  At my suggestion, she went back to the church in an attempt to secure an acknowledgement letter from the church for her generous gift prior to our filing her return. She decided to include the $100.00 in her return. Meanwhile, her continued attempts to receive the acknowledgement letter met with futility.

Several months later, (nowadays, with electronic filing, it doesn’t take long for those letters to arrive at your door), she received a letter from the IRS requesting proof of the gift. This was the only item in her entire return the IRS wanted verification for. Unable to comply with their request, the deduction was disallowed, and she had to pay additional tax, penalties and interest.

On a $100.00 cash donation.

The moral of the story? Making donations by check or money order isn’t sinful. Doing so will save you additional taxes at audit. Take a few minutes to review your charitable giving letters to make sure they are in compliance with the law. If they aren’t, request a corrected letter, again bearing a date prior to the date you file your income tax return. I would also suggest the church or charitable organization provide corrected letters to each and every donor. It’s the decent thing to do.

Charitable giving rules, like many IRS rules, aren’t always as easy as they may appear. Take a few minutes to learn more about the charitable giving rules for cash and checks, and clothing, boats, stocks and the like, by reading IRS Publication 526 and Publication 1771.

Happy Filing.

Eustace Greaves, Jr. creates order out of client’s financial chaos using insurance, income tax planning and preparation, and sometimes, just good old divine guidance. Send him your questions, and quote requests to [email protected]. And whatever you do, don’t let his clients know he wrote this post when he’s supposed to be working on their returns and insurance quotes. That’s a check even his body can’t cash.

 

 

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