Additional relief granted to owners of houses destroyed by Hurricane Katrina

If Hurricane Katrina destroyed your primary residence, The Internal Revenue Service (IRS) has again extended the time you have to sell the lot that the house stood on and enjoy more favorable tax benefits.

Normally, federal law gives owners of homes that are destroyed two years to sell the lot that remains and still be able to qualify for tax advantages. But beyond two years, the sale of these properties is considered the sale of vacant land and larger tax implications apply, according to The Times-Picayune.

This month, the IRS extended the deadline by 16 months. Originally the IRS had extended the two-year deadline to three years last August for victims of Hurricanes Katrina, Rita, and Wilma.

"This is another opportunity for taxpayers to rebuild their lives," IRS Spokesman Mark Green was quoted as saying. "This gives them additional opportunity and time to reconstruct and rebuild and re-establish their lives."

Over the weekend, the IRS provided additional tax relief to disaster-area counties in Iowa, Indiana, and Wisconsin in the form of postponing various tax filing and payment deadlines. Similar relief had been extended to storm victims earlier this spring in parts of Arkansas, Colorado, Georgia, Maine, Mississippi, Missouri, and Oklahoma.

You may like these other stories...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.