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The devastation of Hurricane Sandy is unprecedented. ADAA offers our support and sympathies to all those who have suffered unimaginable losses as a result of this storm. ADAA has compiled resources for our members and the entire gallery community regarding ADAA’s Relief Fund, Federal Assistance, New York City Resources, Tax Relief, Private Relief, Insurance, Conservation, Documentation, and Legal Advice and Claims Counsel. ADAA remains committed to providing service for our members and the gallery community as a whole, and we will continue to act as a clearing house for information and advice. Throughout the coming weeks and months, we will be here to support the arts community in every way we can. The ADAA Relief Fund will provide grants and loans for member and non-member galleries located in Zone A that have been unable to conduct business due to hurricane damage. The funds are being distributed to aid in restoration for galleries in dire need of financial assistance. Recipient galleries in the process of being identified and prioritized by need and must meet criteria which include: catastrophic damage prohibiting gallery business, drastically impaired cash flow, and demonstrated risk of a business’ permanent closure. It is our hope that this injection of resources will speed recovery and assist the entire gallery community in restoring this vital component of cultural life in New York City. A pdf of the application is available here. SBA Disaster Loans FEMA Emergency Loans IDA Sales Tax Letter Displaced Businesses The Internal Revenue Service (“IRS”) announced that it is granting taxpayers and tax return preparers affected by Hurricane Sandy until November 7, 2012 to file returns and accompanying payments that would normally have been due on October 31, 2012. The IRS expects to grant additional filing and payment relief as the Federal Emergency Management Agency (FEMA) makes qualifying disaster declarations. For more information, see here http://www.irs.gov/uac/Newsroom/IRS-Gives-Additional-Time-to-Taxpayers-and-Preparers-Affected-by-Hurricane-Sandy;-File-and-Pay-by-Nov.-7. In general, payments received by a business for property damage or destruction (such payments from an insurance company) are not required be included in the business’ gross income as long as the payments do not exceed the taxpayer’s adjusted basis in the damaged or destroyed property. If the payments for property damage or destruction exceed the taxpayer’s adjusted basis in the damaged or destroyed property, the taxpayer will realize gain for federal income tax purposes. Businesses should consult their own tax advisors to determine whether or not the receipt of any payments related to property damage results in any taxable gain or income. For more information, see the IRS webpage Disaster Assistance and Emergency Relief for Individuals and Businesses, available here: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Disaster-Assistance-and-Emergency-Relief-for-Individuals-and-Businesses-1 Damage, destruction or loss of property incurred by a business as a result of Hurricane Sandy may give rise to a casualty loss deduction for federal income tax purposes. In general, any insurance or reimbursements received or expected to be received by the business for the property damage would reduce the amount of any otherwise available casualty loss deduction. Businesses should consult their own tax advisors to determine the availability of a casualty loss deduction with respect to damage incurred from Hurricane Sandy. For more information, see the IRS Publication 547 (2011), Casualties, Disasters, and Thefts, available here: http://www.irs.gov/publications/p547/index.html. In addition to insurance and government assistance, some individuals and entities impacted by Hurricane Sandy may be able to seek assistance from private charitable organizations. Generally, for-profit businesses will be ineligible to receive such support, but certain individuals (artists, for example) and tax-exempt entities (such as museums, theaters, soup kitchens, and other creative or charitable entities) who were severely affected by the disaster may be able to receive financial help. Private foundations may also be able to direct funding to already-existing charitable organizations in order to supplement the relief efforts. For example, The Lower Manhattan Cultural Council(LMCC) has a list of emergency grantshere and the Joan Mitchell Foundationis offering help to artists and organizations working with visual artists. Find out morehere. Council on Foundations Data Guidestar Recommendations The first place gallery owners should turn to is to their insurance providers. Insurance companies will be inundated with claims after an event like Hurricane Sandy. To expedite the claims process, carefully document the damage to your business, to the extent it is safe to do so, by photographing or taking video of the damage. ADAA is organizing information sessions with lawyers and insurance experts: stay tuned for more information. The American Institute for Conservation of Historic and Artistic Works(AIC) is operating a 24-hour hotline to answer questions about saving artworks at(202) 661-8068.We have compiled the following links to documents and information regarding facilities restoration and art conservation: Consortium on Recovery of Works of Art Damaged by Flooding Presentation Resources for Disaster Response Salvage Supplies List After Disaster Guide to Reentry American Institute for Conservation Collections Emergency Response Team Alliance for Response New York City The Museum of Modern Art’s Emergency Guidelines for Art Disasters ADAA List of Recommended Conservators Though your insurance contacts have likely mentioned to you, we'd like to reiterate how vital it is for everyone to document any and all damage. In addition to any insurance you may have, there may be other kinds of programs offered - through New York State and/or the federal government - in the weeks ahead. Photos, receipts, and other kinds of paperwork will be crucial in pursuing these opportunities. Legal Advice and Claims Counsel ADAA members will be contacted about access to legal advice through the Association.We understand this will be a long road to recovery there will be many challenges ahead. We encourage all of those dealing with physical damage and loss to take the time and energy to organize a plan. Though restoration will be arduous and sometimes completely overwhelming, we want to provide you with the resources to divide things into manageable pieces. Please let us know if you have any questions or if there is anything else we can provide. |
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