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Hurricane Tax Provisions Included in Bill Passage

Posted by Zinner & Co. Tax Department on Sep 29, 2017 3:13:15 PM

Disaster Tax Relief and Airport and Airway Extension Act of 2017 expands the application of disaster-related tax relief to the hard-hit US Virgin Islands and Puerto Rico. 


"This is truly significant relief.  The ability to take advantage of a casualty loss deduction without having to overcome the 10% threshold or itemize deductions is huge." - Howard Kass, CPA, CGMA, AEP, Senior Tax PartnerCleveland CPAs understand hurricane tax breaks.jpeg

H.R. bill 3823 extends several federal aviation programs, aviation taxes, and public health programs. It also modifies requirements for purchasing flood insurance and provides tax incentives for individuals and businesses affected by recent hurricanes.

The bill extends several expiring Federal Aviation Administration programs and authorities through March 31, 2018. The bill also amends the Internal Revenue Code to extend through March 31, 2018, the expenditure authority for the Airport and Airway Trust Fund and the taxes that finance the fund, including: fuel taxes, ticket taxes, and taxes related to fractional ownership programs.

The bill extends several public health programs, including: (1) the Teaching Health Center Graduate Medical Education program, (2) the Special Diabetes Program for Indians, and (3) the Medicare Patient Intravenous Immunoglobulin (IVIG) Demonstration Project. The bill also reduces funding for the Medicare Improvement Fund.

With respect to flood insurance, the bill specifies that private flood insurance offered outside of the National Flood Insurance Program satisfies the requirement for homeowners to maintain flood insurance coverage on properties that have federally-backed mortgages and are located in a flood zone.

The bill modifies several tax provisions and rules for individuals and businesses in areas affected by Hurricanes Harvey, Irma, and Maria, including provisions regarding: early withdrawals and loans from retirement plans, employment-related tax credits, deductions for charitable contributions, deductions for personal casualty losses, and income requirements for the earned income tax credit and the child tax credit.

If you have questions about disaster relief tax provisions, your tax situation, or want to learn how to minimize your tax obligation, contact us. We're happy to help and ready to start the conversation. Reach us at info@zinnerco.com or 216.831.0733

Source: https://www.congress.gov/bill/115th-congress/house-bill/3823

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Topics: Howard Kass, Brett W. Neate, Taxes - Planning, Rules and Returns

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