Desroches Partners is firmly at your side
For many of us in Houston and along the Gulf Coast, Hurricane Harvey was a new experience, and one we could have done without. We will likely be dealing with its repercussions for years to come. As your CPA and trusted advisors, we will be there with you as we rebuild together. Houston will never be the same. But we believe that “changed” can mean “even better”.
As you deal with the fallout and begin putting pieces back together, it’s critical that you understand the financial ramifications: what assistance is available, how your tax situation changes, and what to watch out for to avoid making costly mistakes. Here are a few topics to help you wrap your mind around the task at hand, and the silver linings that accompany this record-breaking storm cloud.
Casualty Losses: What they are and how they work
Taxpayers who suffer an economic loss due to a natural disaster like Hurricane Harvey can claim a casualty loss deduction on their federal income tax return, either in the year of the disaster or the prior year.
This article discusses how casualty losses work and how to claim them:
Learn about Casualty Losses
How to give: Employer Qualified Disaster Relief Payments
Good employers care about their employees, and jump to help them when assistance is needed. Fortunately, the tax code provides for tax relief, to maximize these private-sector contributions and get the most out of an employer’s generosity.
This article discusses how to keep disaster relief contributions from being taxed as income, and avoiding one informal method of giving that can lead to some unpleasant surprises:
About employer qualified disaster relief payments
Hardship Distributions and Plan Loans
Internal Revenue Service Announcement 2017-11 eases the requirements for loans and hardship distributions from qualified retirement plans for participants who have been impacted by Hurricane Harvey.
Click here to learn about hardship distributions and plan loans
FEMA Assistance for Harvey
Hurricane Harvey and the ensuing flooding was a wide-scale disaster with serious economic repercussions. The Federal Emergency Management Agency (FEMA) has implemented a number of programs to help its victims get back on their feet. As your CPA, we’re available to help you understand and benefit from these programs.
This link contains a number of resources to help those impacted by Hurricane Harvey apply for assistance and understand the rebuilding process.
Also check out this page for some helpful resources on mold and mildew, which are a very real hazard in a building that’s flooded.
Update for 2017 Texas franchise tax filers
The Texas Comptroller’s office is also allowing temporary automatic extensions of time to file taxes for businesses located in the federal declared disaster areas until January 5, 2018.
Tax Relief: Reminder
The IRS has issued tax relief for victims of Hurricane Harvey. Taxpayers residing or operating a business in the counties listed below will have until January 31, 2018, to file certain individual and business tax returns and make certain tax payments. This relief includes individual and business taxpayers granted extensions until September 15, 2017, or October 16, 2017. It also includes quarterly estimated income tax payments originally due on September 15, 2017, and January 16, 2018, and the quarterly payroll and excise tax returns normally due on October 31, 2017.
Texas counties eligible for tax relief
Austin, Aransas, Batrop, Bee, Brazoria, Calhoun, Chambers, Colorado, Dewitt, Fayette, Fort Bend, Galveston, Gonzales, Goliad, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Walker, Waller, and Wharton.
Please contact Desroches Partners with any questions
For most of us, Harvey was unlike anything we’d dealt with before. Disaster recovery requires a lot of work, and comes with a steep learning curve. We at Desroches are on hand to help you navigate the many details and nuances, and to help you make the most of a difficult situation. By relying on each other’s expertise and goodwill, we can come back from this stronger than ever.