We’ll Have an Accountant on the Show to Explain…

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Last week, The U.S. House of Representatives passed The Tax Relief for American Families and Workers Act. Hurricane Ian will finally be called a “qualified disaster.” It could lead to tax relief many of you have been waiting for and accountant Steven Phillips will be our guest this Saturday at 11:30 to explain.

The legislation was sponsored by Florida Representative Greg Steube and ensures that Americans harmed by recent disasters, including Hurricane Ian, receive long-awaited relief.

Hurricane Ian was the third-most costly hurricane in U.S. history. The legislation designates that Hurricane Ian and other hurricanes including Hurricane Idalia, Hurricane Nicole, and Hurricane Fiona, should be treated as qualified disaster events for purposes of determining the tax treatment of certain disaster-related personal casualty losses. The legislation would allow Americans who were subjected to damages from hurricanes to claim such losses without itemizing such deductions. Moreover, such losses would not have to exceed 10% of a claimant’s adjusted gross income to qualify.

Steube said, “After monstrous Hurricane Ian devastated Florida’s Suncoast, I promised Floridians that I would fight as long as it takes to ensure recovery. Today, I’m glad to see the House finally do its job and pass my bill to provide disaster tax relief to Americans in 45 states. I urge swift passage in the Senate and I expect the President to sign the package into law.”

 

8 COMMENTS

    • Casualty losses could’ve been deducted for Ian losses. Since Congress had not yet declared it a qualified disaster, the loss would’ve been limited in that it would’ve been reduced by 10% of AGI (among other limitations and requirements).

      Having it now declared a qualified disaster, that 10% is removed. Anyone who already claimed the casualty loss on a previous tax filing can file a 1040X.

      This will doubtless help many impacted by Ian – and especially those who didn’t receive what they should have from insurance.

      Consult your tax attorney.

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