Tax Relief for Disaster Recovery Efforts

Insights and practical guidance in the wake of a natural disaster

James Atkinson

James Atkinson

Principal, Washington National Tax, KPMG (US)

+1 713 319 3190
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Disaster Recovery

KPMG LLP (KPMG) tax professionals examine the special tax law provisions that may help taxpayers and businesses recover financially from the impact of a disaster. 

 

 

When a natural disaster becomes an unfortunate reality, those affected are widespread:

  • Communities where destruction occurred
  • Companies that have had loss of property
  • Employers, charities, and the community providing support to their employees
  • Contractors involved in rebuilding the infrastructure
  • Insurers assessing the damage

Bookmark this page to stay on top of the latest news and insights for entities that may be affected by a natural disaster.

Insights for affected taxpayers

Hurricanes Florence and Michael: Casualty Loss Deductions

The recent devastation resulting from Hurricanes Florence and Michael underscores the importance of understanding how and when companies experiencing casualty losses can claim federal income tax deductions for those losses.

Employers Helping Employees—Disaster Relief

When a disaster hits, employers often want to help their affected employees. It is possible for employers to make certain payments, so that some or all of the employer provided assistance is non-taxable, but nonetheless deductible.

Like-Kind Exchange Relief for Taxpayers Affected by Hurricanes Florence and Michael

The IRS has granted “affected taxpayers” with respect to Hurricanes Florence and Michael an extension of time to perform certain actions. This article explains how taxpayers affected by the disaster may qualify for this rare extension of time.

Deferral of Gains Resulting from Casualties and Other Involuntary Conversions

For those taxpayers who realize a gain on an involuntary conversion, like a casualty, an election is available under section 1033 that allows those taxpayers to take some of the sting out of the gain by deferring its recognition.

California Wildfires

Hurricane Michael

Hurricane Florence

Hurricane Harvey

Hurricane Irma

Hurricane Maria