Overview
Recognizing the devastation in parts of Jefferson, Orange and Chambers Counties, Kinsmen Homes has redirected
substantial resources to restoration, remodeling and rebuilding in Bridge City, Sabine Pass and other areas hardest hit by Hurricane Ike.
Please download our Disaster Recovery Financial Assistance Presentation for more information on Disaster Assistance
benefits that may be available to you.
Nationwide Disaster Tax Relief Update
The Emergency Economic Stabilization Act of 2008 has given new tax breaks for nationwide disasters. Taxpayers are allowed to deduct casualty losses in the year the disaster occurred or in the taxable year immediately preceding the year in which the disaster occurred. This means that you can deduct Hurricane Ike related losses in either 2007 or 2008 returns. If an amended 2007 return is chosen, the latest date for this election is April 15, 2009.
This act has also eased the casualty loss rules. The $100 deduction limitation and 10% AGI deduction limitation are waived for those losses attributable to federally declared disaster areas.
Please note that personal casualty gains must be netted against the personal casualty losses attributable to a federally declared disaster and those personal casualty losses not attributable to a federally declared disaster are still subject to the $100 deduction limitation and 10% AGI deduction limitation. The $100 deduction limitation is increasing to $500 for tax year 2009.
Prior to this act, casualty losses were limited to an individual’s itemized deductions. For those taxpayers who do not itemize, they can now add the net disaster loss amount to their standard deduction.
For additional information, please visit our website or call a GLO tax professional at 713.621.4700.