Large Events May Not Get Federal Assistance

 Large Events May Not Get Federal Assistance

A large casualty event may not get the proper attention it deserves. In order for an event to get the attention of the federal government’s resources a number of steps must occur. Local agencies must usually ask the state government to provide assistance. If the state does not declare the event an emergency or disaster, the federal government will likely not step in to assist. You can find out information about disasters that have been declared by going to the IRS website at http://www.irs.gov/newsroom/article/0,,id=200380,00.html. California specific information is available on the Office of Emergency Services site at http://www.oes.ca.gov/WebPage/oeswebsite.nsf/Content/BE714C2AD6CF5CC088257503000412BE?OpenDocument.

If your disaster is not getting the attention that it needs, contact your representatives at both the state and federal levels. Ignored, angry voters get legislators’ attention.

October 2008 Legislation

 October 2008 Legislation

CASUALTY LOSSES AND INVOLUNTARY CONVERSIONS
Emergency Economic Stabilization Act of 2008

The 2008 Midwest storms generated a number of modifications to the casualty and involuntary conversion rules. Some changes affect all taxpayers and some only the specified Midwestern states.
For this addendum only “bullets” are reported:

Presidentially declared disasters are now federally declared disasters.

Casualty Loss Deduction Limitations
- $100 per casualty is raised to $500 for 2009 only.
- For federally declared disasters occurring in 2008 and 2009 only:
For Individuals:
- 10% of AGI limitation are eliminated.
- Casualty Loss “Standard Deduction:” For non-itemizers, the standard deduction is increased by the amount of the deductible casualty loss and is also allowed for AMT purposes and permitted for carrybacks and carryforwards.
- Five year carryback of losses allowed.
For Businesses:
- Expensing certain disaster recovery expenses under Section 198A.
- 50% demolition is allowed for covered demolition expenses. Special bonus depreciation is allowed for certain costs that would normally be capitalized (must be trade or business property or property held for investment and applies to expenditure incurred or paid for in 2008 and 2009).
- Debt Forgiveness Provisions of 2007 Legislation Extended
The special debt forgiveness provisions enacted in 2007 that applied to debt forgiven through 2010 now applies to debt forgiven through 2013.
- Midwest – The special provisions applicable to those who experienced the Katrina, Wilma and Rita hurricanes are extended to ths storms included in the Midwest storm areas.