On September 29, President Trump signed the “Disaster Tax Relief and Airport and Airway Extension Act of 2017.” The Act provides temporary tax relief to victims of Hurricanes Harvey, Irma, and Maria and includes, among other things, the following:
Loosened restrictions for claiming personal casualty losses –
Tax favored withdrawals from retirement plans –
Suspension of limitations on charitable contributions –
New employee retention tax credit –
When reviewing your personal casualty losses, please keep in mind that a deduction for casualty losses is only available for physical damage or loss to your property. To substantiate your loss, original receipts, repair costs and appraisals can establish pre and post loss values. To the extent you are insured, you must reduce your loss by the reimbursement. Be sure to report your losses to your insurance company even if the deductible is higher than the loss you sustained. If you fail to file an insurance claim, the IRS may reduce your loss by the insurance reimbursement you could have received.
The act also provides for postponed filing and payment deadlines and penalty relief. The IRS has postponed deadlines for making quarterly estimated tax payments and for filing tax returns that have previously been granted an extension to file to January 31, 2018.
If you think you may qualify under the provisions of this new law and have questions, please feel free to contact our office. We will be happy to assist you.