9/2/2009
Disaster Recovery Tax Assistance
by Leah Kirkpatrick, Graduate Assistant, UALR Lead Center
The onslaught of national disasters that began in Florida with Hurricane Frances in 2004 has been answered with short-term assistance by the federal government in the form of tax alleviations. Forms of assistance have ranged from extending tax due dates to increased deductions and actual monetary relief.
In October 2008, a law was passed that blanketed all national disasters occurring during the tax years ranging from Dec. 31, 2007, to Dec. 31, 2009. This new law provides for the following tax revisions for businesses:
- Allows an affected business taxpayer to deduct certain qualified disaster cleanup expenses;
- Allows an affected business taxpayer to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance that is normally available; and
- Increases the limits that an affected business taxpayer can expense for qualifying section 179 property.
For further information about the National Disaster Relief Act, including the tax benefits for individuals, visit:
http://www.irs.gov/irs/article/0,,id=203056,00.html.
