As people begin to look at the long-term effects of Hurricane Irma, many are now asking up how to deal with the financial side of hurricane Irma, including questions regarding taxes. Recently, Florida CPA firm Markham Norton (http://www.markham-norton.com/) prepared an outline that we found to be simple and straightforward. We believe the outline may help prepare you to ask the right questions to your CPA or tax preparer. Some highlights are set out below.
First, based on emergency legislation, some Floridians impacted by Hurricane Irma have the ability to obtain extensions until January 31, 2018, to file certain individual and business tax returns. This includes some individuals who have already obtained valid extensions for the 2016 tax year through October 16. For more detail, you can view the IRS’s Press Release on the topic at http://www.irs.gov/newsroom/irs-gives-tax-relief-to-victims-of-hurricane-irma-like-harvey-extension-filers-have-until-jan-31-to-file-additional-relief-planned.
Second, the new law may make it easier to get certain tax deductions for casualty losses caused by Hurricane Irma, Harvey, Maria, or other hurricanes. For example, you might be able to deduct damage from things like food spoilage due to lack of electricity and other losses you might not think are deductible (unless you are separately being reimbursed for these losses).
The new law also temporarily suspends certain limitations on the deductions for charitable contributions to hurricane relief made before the end of 2017.
The Markham Norton article – mentioned above – recommends that you report all casualty losses to your insurance carrier if you have insurance coverage even if the deductible is higher than the actual losses. This seems counterintuitive for those of us who are wary of premium increases stemming from filing a claim, but this same recommendation is being made by other knowledgeable sources as well.
At Vernon Litigation Group, we understand the challenges facing businesses contending with lost revenue and property damage, and we believe business owners deserve to be properly compensated. That is why you pay insurance premiums. If your insurance carrier is delaying your business interruption claim or tries to underpay a claim, Vernon Litigation Group can pursue your rights against the insurance company that is refusing to live up to its obligations under the policy.
Vernon Litigation Group is based in Naples, Florida with additional offices in Georgia. Vernon Litigation Group represents businesses and individuals throughout the United States who have financial disputes, including insurance, construction, contract, and fraud disputes arising out of hurricanes and other natural disasters.
For more information, contact:
Vernon Litigation Group
Phone: (239) 319-4434