Federal Disaster Tax Relief Act Signed into Law
Individuals and businesses affected by recent federally declared disasters now have access to critical tax relief.
Taxpayers impacted by recent federally declared disasters now have some much-needed support. President Biden has signed the Federal Disaster Tax Relief Act of 2023, providing crucial tax relief measures for individuals and businesses.
The key provisions of this legislation include extended tax deadlines, expanded deductions for disaster-related losses, and additional tax benefits to help businesses recover. Those expanded deductions include the designation of Hurricanes Ian, Idalia, Nicole, Fiona, Debby, Helene and Milton (as well as other disasters nationwide) as “qualified” disasters. This eliminates the requirement that casualty losses must exceed 10% of an individuals adjusted gross income (AGI).
This law aims to ease financial burdens for those recovering from disasters and offers opportunities for tax planning. To learn more, check out the full FICPA announcement.
If you have questions about how this impacts your situation, reach out to your trusted tax advisor.
