Tax

Hurricane Wilma Tax Relief

TAX RELIEF RELATING TO HURRICANE WILMA
Glenn G. Schanel, CPA and Associates

On December 21, 2005, President Bush signed into law the Gulf Opportunity Zone Act of 2005. This Act includes certain tax relief for those affected by Hurricane Wilma.

The Act eliminates the 10 percent and $100 floors for casualty and theft losses from Hurricane Wilma disaster areas. This means that if you had any loss and you itemize deductions, you will receive a benefit without having to first reduce the loss by 10% of
your adjusted gross income. So when you are gathering together your tax information for 2005, be sure to include hurricane losses that were not covered by insurance. These include the reduction in value of your home due to hurricane damage, the value of
destroyed fences and pool enclosures, and the cost of removing and replacing trees and landscaping. And, as for all deductions, make certain that you maintain adequate records supporting the loss.