Thomson Reuters has released several online tax resources to provide guidance and assist tax practitioners in responding to their clients’ needs in the aftermath of Hurricanes Harvey, Irma and Maria.
Two new Thomson Reuters Checkpoint special reports, Hurricane Harvey: Federal Tax Considerations Associated with Disasters and Hurricanes Irma and Maria: Federal Tax Considerations Associated with Disasters, provide information on how to approach both immediate issues and longer-term return preparation and planning for this year and during the 2018 filing season.
Taxpayers affected by a federally declared disaster area are eligible for special tax relief provisions. Our special reports outline the favorable tax treatments of assistance payments that are received by hurricane victims, including qualified disaster relief and mitigation payments and grants made by FEMA as part of its “Individuals and Households Program.”
Additional topics covered include how to calculate casualty loss deductions for various types of property, how to document proof of losses, and the tax implications for insurance reimbursement, including an explanation of how to defer gains.
“Both individuals and businesses have suffered widespread losses in the wake of these recent natural disasters and are entitled to various tax relief measures from the federal government. In the urgent rush to appeal for financial relief, practitioners must carefully review and consider the relevant tax provisions,” said Salim Sunderji, managing director, Checkpoint, with the Thomson Reuters Tax & Accounting business. “We aim for these reports and resources to provide clear and accessible information on the most critical financial steps necessary to begin the process of recovery and a return to normalcy.”
Thomson Reuters has also issued two client summaries for practitioners to send directly to their clients, After Hurricane Harvey and After Hurricane Irma, to provide federal tax break relief information and other assistance to clients affected by those hurricanes.
These client summaries address how to calculate deductions for personal casualty losses that are not covered by insurance, explain the special rules available to taxpayers in federally declared disaster areas, and discuss options for managing involuntary conversion gains. Additional topics cover how to strategically prepare for business interruption insurance claims, and the potential to benefit from streamlined loan procedures and hardship withdrawals from employer-sponsored retirement plans.
Additional resources available online from Thomson Reuters include federal tax pronouncements and state tax announcements, including coverage of declared federal disaster areas, leave-based donation programs, tax filing and payment relief, as well as retirement plan relief for impacted areas.
This free, timely content is available for download at tax.tr.com/relief-resources.
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