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...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.