If your business experienced a loss of revenue as a result of business interruption after Hurricane Irma, you may qualify for special relief—and we’re ready to help
As we get ready to celebrate the Holiday Season, many business owners, particularly in South and Central Florida, are still recovering from Hurricane Irma—one of the strongest hurricanes to hit the United States since Hurricane Andrew.
Hurricanes cause anxiety to both homeowners and business owners before a storm hits, particularly as a result of last-minute preparations, storm-related expenses, evacuations, and the anticipation of potential damage and casualty loss to residences and commercial property.
However, a more pervasive reason for distress is the aftermath of landfall. Hurricane Irma made landfall on September 10, 2017 and this unusual weather event interrupted the lives of millions of Florida residents who either evacuated or hunkered down before coming ashore.
Businesses suffered widespread losses as a result of Hurricane Irma and its damaging path. A total of 48 out of Florida’s 67 counties were affected by the storm, resulting in more than $25 billion in losses—according to the Florida Office of Insurance Regulation (OIR).
On September 29, 2017, the President signed the Disaster Tax Relief and Airport and Airway Extension Act of 2017, which effectively provides tax relief to individuals and businesses impacted by not just Hurricane Irma, but also Hurricane Harvey in Texas and Hurricane Maria, which massively affected the U.S. Commonwealth of Puerto Rico.
The following are items that Kuberneo CPA feels are applicable to our clients, friends, and family who were located in Disaster Areas affected by all three major hurricanes of 2017. If you meet the criteria of this new tax relief extension, you could qualify for substantial tax relief.
Making sense out of the New Tax Act
The Disaster Tax Relief and Airport and Airway Extension Act of 2017 provides assistance by:
- Eliminating the current requirement that uncompensated personal casualty losses that exceed 10 percent of adjusted gross income to qualify for deduction and eliminated the current requirement that taxpayers itemize deductions to access this tax relief.
- Providing an exception to the 10-percent early retirement plan withdrawal penalty for qualified hurricane relief distributions.
- Temporarily suspending limitations on charitable contribution deductions associated with qualified hurricane relief made before December 31, 2017.
- Providing a tax credit for 40 percent of wages (up to $6,000 per employee), or a $2,400 Tax Credit per employee, if you own a business and have employees affected by hurricane-related business interruption.
- Allowing taxpayers to use earned income from 2016 to determine the Earned Income Tax Credit and Child Tax Credit for the 2017 tax year.
The above new laws are only a small portion of the New Disaster Tax Act provisions. There may be additional benefits or advantages that only a tax professional can identify through a private consultation.
A beneficial outcome can be a welcomed opportunity to offset the losses and remunerate your business—and the accounting staff at Kuberneo CPA is ready to help you evaluate your unique situation.
The only way to find out is by allowing us to calculate losses and weigh them against the New Tax Act provisions for hurricane relief—which can result in substantial tax savings for 2017 tax filing year.
Ready to find out if your business qualifies for Hurricane Irma tax relief? Send us a message today or call our office at (407) 582-0703 to schedule a private consultation with one of our Accountants.