Hurricane Katrina ? How To Use Your Business Loss To Get A Refund on 2004 Taxes > NetSparsh

Home
>
Tax
>
Hurricane Katrina ? How To Use Your Business Loss To Get A Refund on 2004 Taxes

Hurricane Katrina ? How To Use Your Business Loss To Get A Refund on 2004 Taxes

With the massive losses caused by Katrina, the economy of the Gulf Coast region is in extremely bad shape. Fortunately, there is a quirk in the tax code that can help you generate a large refund from your 2004 taxes.

Apply Losses to 2004 Taxes

When a large geographic area suffers a disaster, the President can declare it a federal disaster area. President Bush has made such a declaration for the Gulf Coast area.

While you've probably heard such declarations occur over the years, I doubt it means much to you. The declaration, however, has major implications for recovery efforts. Initially, the declaration of a federal disaster area means the federal government is going to provide disaster relief loans, special grants that don't have to be repaid, unemployment benefits and a variety of other assistance. It also signifies a major tax break for impacted businesses.

When a business suffers a loss, the deduction must typically be made in the year the loss occurred. With Hurricane Katrina, the deduction would typically occur when you file taxes in 2006. The problem, of course, is 2006 is a very long time from now if your business is destroyed. You will find this hard to believe, but the IRS is here to help.

The IRS is going to give you cash. Under current tax law, you may make a special election to deduct your business losses caused by Katrina on your 2004 taxes. By doing this, you do not have to wait till 2006 to get a tax refund. You don't have to do this, but it may be the key to getting necessary cash.

To make the special election, you must claim it on your 2004 taxes. If you have already filed taxes for 2004, you can file an amended tax return claiming the deduction.

In Closing

Using this tax strategy can help generate badly needed cash. Make sure you pursue the strategy with the help of your tax professional. If all your records are destroyed, you can order copies of past tax returns from the IRS.

Richard Chapo is with http://www.businesstaxrecovery.com - recovering overpaid taxes for small businesses. Visit our article page - http://www.businesstaxrecovery.com/articles - to read more tax articles.

In The News:

Maldives decides not to press GMR for taxes over airport compensation Business StandardIn a breather to the GMR Group, the Maldivian government has decided not to press for income tax and fines of over $20 million from the infra major on the ...

Jaitley gives 2-month extension to CBDT task force on direct tax code; panel to now submit report by July 31 Business TodayThe new direct tax code is set to replace the existing Income Tax Act; the aim is to reform the complex income tax laws into simpler tax codes with reduced rates, ...

Focus on direct tax reforms as panel set to submit report Moneycontrol.comThe next thing that the people of India, who gave Narendra Modi his second full majority term, would be looking towards is reduced tax rates in the full budget.

UK tax system is more progressive than thought, says IFS Financial TimesBritain's tax system is progressive and takes significantly more money from the rich than the poor, the Institute for Fiscal Studies, a respected think-tank, said on ...

Tax optimiser: NPS, perks can help salaried Kumar save Rs 66,000 in tax Economic TimesYou should always ask your employer for the NPS benefit and also invest in the scheme on your own. This way you can reduce your tax outgo significantly.

Curbing black money: Now, get ready to pay tax on cash transactions at bank Business StandardThe Narendra Modi government in its second term will put in place measures to further curb black money generation. According to sources, policymakers have ...

Botched your tax withholding in 2018? It's about to get more complicated CNBCFine-tuning your tax withholding is about to get a little more complicated. The Internal Revenue *Service* is expected to release a draft of its new Form W-4, the ...

Task force on direct tax laws gets two more months to submit report Business StandardThe deadline for the direct tax code task force to submit its report has been extended by two months to July 31, according to a government official. This decision ...

Chainsaws, Pixy Stix and other unnecessary items that are tax exempt, while tampons aren't CBS NewsHere are some of the most egregious examples of products states exempt from sales tax, while neglecting to do the same for menstrual hygiene products.

3 Ways to Pay Less Tax on Your Investments Yahoo FinanceInvesting is a great way to grow your wealth. But the money you earn on investments isn't always yours to keep. Just as the IRS is entitled to a portion of the ...

Going reasonable: Finance Ministry revises tax collection target for FY20 Business StandardA day after election results are out, the Ministry of Finance has moderated the tax collection target for smaller cities, while increasing it for bigger centres like ...

The Property Tax Reform Package Is Heading To Gov. Greg Abbott's Desk KUTA sweeping property tax reform bill that aims to slow rising property tax growth will soon head to Gov. Greg Abbott 's desk for approval, capping a.

NY state passes bill allowing Congress to request Trump's tax returns CNNDemocrats in New York state passed a pair of bills Wednesday that would allow Congress to get hold of President Donald Trump's state tax returns amid an ...

Trump tax returns legal battle: IRS lawyers agree with Democrats Vox.comAccording to Josh Dawsey and Jeff Stein of the Washington Post, an internal IRS legal memo agrees with most outside observers that the Treasury Department ...

Havenly as ever Switzerland will remain a low-tax centre for big firms The EconomistSWITZERLAND IS KNOWN for its delicious chocolate, its luxury watches—and its lightly taxed multinationals. Some 24000 international companies are ...

Corporate America paying its lowest share of taxes since Eisenhower CBS NewsFederal income tax revenue from U.S. corporations hasn't been this low since 1960, IRS data show.

UK tourist tax will only work with hotel VAT cut, warn MPs Financial TimesThe introduction of a visitor tax at the UK's most popular tourist destinations can only work if value added tax is cut for hotels, say MPs. The All Party ...

India notifies pact with US to check tax evasion by MNCs Economic TimesThis information will enable an enhanced level of assessment of tax risk .

Tax break under 54EC only for property sale LivemintMy long-term profit on unlisted shares after indexation is ₹8 lakh for the financial year 2018-19. Can I invest in 54EC bonds to save tax? —Sanjay Pahuja.

Two tax hikes for schools could end up on California’s 2020 ballot Los Angeles TimesThough it's never a sure bet that California voters will sign off on a tax increase, the odds improve when the money is promised to schools. Less clear, though, is ...

View: Modi has failed to end India's tax terror Economic TimesOverseas investors would like PM Modi to fulfill his 2014 pledge to make the tax system less capricious.

The property tax reform package is heading to Gov. Greg Abbott's desk The Texas TribuneThe bill aims to slow rising property tax revenues and make it easier for Texans to understand how their tax bills are determined. The House and Senate both ...

Albany Closes a Loophole for Trump Pardons. Next Up: His Taxes. The New York TimesThe Legislature is poised to pass a bill that would allow three congressional committees to seek the release of President Trump's state tax returns.

Low-Income College Students Are Being Taxed Like Trust-Fund Babies The New York TimesWASHINGTON — A little-noticed provision in President Trump's sprawling new tax law is treating middle- and low-income college students as if they are ...

How Loopholes Help Trump and Other Real Estate Moguls Avoid Taxes The New York TimesDonald Trump reported more than $1 billion in real estate losses on his tax returns from 1985 to 1994, The New York Times revealed this week. Those losses ...

Profitable Giants Like Amazon Pay $0 in Corporate Taxes. Some Voters Are Sick of It. The New York TimesIn Ohio, where companies like FirstEnergy and Goodyear pay no federal corporate taxes, Democrats haven't figured out how to leverage anxiety over income ...

Where does California’s cannabis tax money go? You might be surprised. The Mercury NewsDrug abuse prevention, public safety, protecting the environment, economic development — these were some of the visionary promises that legalized cannabis ...

Mayor Pete’s 49.9999% Tax Bracket The New York TimesThis article is part of David Leonhardt's newsletter. You can sign up here to receive it each weekday. “Being left of Obama doesn't make you extremely ...

Angel Tax: Elections 2019: Industry roots for Angel Tax abolition, AI-enabled solutions Economic TimesThe startup industry is hopeful that the new government will create a thriving ecosystem to make them flourish. Buoyed by earlier positive initiatives such as the ...

Trump Accidentally Raised Taxes on the Children of Dead Veterans New York MagazineAn ill-considered provision in Donald Trump's signature law hiked taxes on the survivor's benefits of Gold Star families, and low-income students' college ...

Are any of the Coalition's claims of new Labor taxes actually true? The GuardianGuardian Australia asks two experts if eight ALP election policies can really be considered a 'new tax'

Soda stream How to tax sugary drinks The EconomistSUGAR TAXES are on a high. Around 40 countries and seven American cities have started to tax sugary drinks, mostly in the past few years. Supporters say ...

TurboTax Uses A “Military Discount” to Trick Troops Into Paying to File Their Taxes ProPublicaIntuit, the maker of TurboTax, created and promoted a “military discount” that charges *service* members who are eligible to file for free.

Trump+Taxes+Deutsche Bank+Mnuchin+Barr = Cover-Up BloombergFor a White House that's as dedicated to “transparency” as this one, there sure are a lot of things being kept under wraps.

Government may bring back tax on cash withdrawals from banks in attempt to curb black money, says report CNBCTV18After the demonetisation move in its first term, the Narendra Modi-led national Democratic Alliance (NDA) government may take up more measures to curb black ...

FHTA recommends Government to make tax system equitable FBC NewsIn its 2019/2020 Budget Submission, the Fiji Hotel and Tourism Association has recommended the government to make the tax system fairer and equitable.

Soda Taxes Are a 'No-Brainer' for Public Health, Says the Author of a New Study on Them TIMEA new JAMA study suggests taxing sugary drinks really can make people buy fewer of them, potentially translating to better public health. Taxes on soda and ...

Texas House, Senate approve budget deal with agreements on school finance, property taxes, Hurricane Harvey recovery The Texas TribuneCompleting negotiations that have taken place over the last few months, Texas House and Senate lawmakers approved a compromise on a state spending plan ...

Land reforms, tax reduction: How Modi govt plans to spur economic growth Business StandardIn its second term, the Narendra Modi government wants to embark on new reforms and complete the unfinished business of its first term at a difficult time when ...

Direct tax panel gets more time for report Times of IndiaIndia Business News: NEW DELHI: Finance minister Arun Jaitley on Friday extended by two months the tenure of the task force set up to draft the new direct ...

The secret of why Donald Trump won't release his taxes CNNOn Monday night, as expected, Treasury Secretary Steve Mnuchin informed House Ways and Means Committee Chairman Richard Neal, D-Massachusetts, that ...

METALS-Shanghai base metals rise after China premier says to keep tax low ReutersIndustrial metals on the Shanghai Futures Exchange rose on Monday, after Chinese premier Li Keqiang said China would look to rein in taxes to support the ...

Victorian Budget 2019 hits foreign investors, car buyers and public service as stamp duty slumps ABC NewsForeign property investors, luxury car buyers and public servants will bear the brunt of a steep decline in stamp duty revenue, as the Andrews Government ...

More GST to come from the party of lower taxes Sydney Morning HeraldLess than a week after the election we hear the Tax Office will recommend to the government that it introduce the GST to some food items (''Morrison rejects tax ...

5 Takeaways From 10 Years of Trump Tax Figures The New York TimesThe Times obtained details from a decade of the president's tax returns, revealing $1.17 billion in business losses. Here's what else the numbers show.

Special Public Prosecutors Vacancy (Income Tax, Chennai) Live LawIncome Tax Office, Chennai invites applications from advocates of substantial standing and repute and with good academic credentials for the empanelment of ...

Car industry slams Victoria's proposed tax on vehicles over $100,000 - UPDATE CarAdviceThe car industry has slammed a proposal by the Victorian Government to slug vehicles priced over $100000 with an additional tax – on top of the 10 per cent ...

Modi 2.0: Jobs, agriculture, tax reforms await push Deccan HeraldPrime Minister Narendra Modi stunned the nation when he introduced some striking economic reforms soon after taking over in 2014. Jan Dhan Yojana ...

IRS could be forced to release Trump’s taxes in the heat of 2020 POLITICOThe administration is betting that it can drag out the coming case beyond next year's elections. That could prove a bad strategy.

How Vanguard Patented a Way to Avoid Taxes on Mutual Funds BloombergControversial heartbeat trades help the funds avoid taxable gains.

President Trump proposes import tax on gaming consoles due to China trade war Windows CentralCurrently, there's a trade war going on between China and the United States. Both countries keep on raising tariffs on imported goods, which means that the cost ...

Tax ESOPs at the time of sale, Local Circles tells DPIIT ETtech.comLocal Circles, a citizen engagement social networking platform, has appealed to the government that shares granted by startups to their employees be taxed ...

Mnuchin refuses to turn over Trump taxes to House Democrats CNNTreasury Secretary Steven Mnuchin on Monday denied a request from House Democrats for access to six years of President Donald Trump's personal tax ...

Income tax implications of PF withdrawal LivemintThere should not be any gap in contribution to PF to avail of the continuous *service* clause.In the event of PF withdrawal before five years of continuous *service*, ...

South Africa's Carbon Tax Set To Go Into Effect Next Week NPRA carbon tax in South Africa will go into effect on June 1. President Cyril Ramaphosa signed the measure into law on Sunday, making South Africa one of about ...

Budget corporate tax cuts depend on LS outcome: Sources Economic TimesThe government had assured industry of fulfilling its earlier promise of lowering the corporate tax rate in the full budget in July if it is voted back to power.

Trump’s Tariffs Are a New Tax on Americans The New York TimesPresident Trump's new tariffs on Chinese imports, which took effect at 12:01 a.m. on Friday, are taxes that will be paid by Americans. That is a simple fact, and it ...

Heres how the new Form 16 will change income tax return filing this year Business StandardForm 16 is issued annually, by an employer to an employee as a proof of salary paid and taxes deducted on it. It has two parts i.e., Part A and Part B as ...

Mexico tax plan for Uber creates friction among ride hailing firms ReutersMEXICO CITY (Reuters) - Mexico on Monday detailed plans to withhold tax from drivers for ride-hailing and food delivery firms such as Uber Technologies Inc ...

Tax optimiser: Salaried Shanker can save more tax if employer contributes to his NPS Economic TimesNot only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own. You can reduce your tax outgo significantly.

In Wake Of Federal Tax Reform, Blue States Scramble To Hide High Taxes The FederalistDemocrats insist richer people need to pay more taxes. When that becomes slightly more true because of a Republican initiative, they hide income.

What is tax liability if I surrender my insurance policy before maturity? Economic TimesIf you surrender the policy and opt out of the annuity scheme, the entire sum received by you from the insurance company will be treated as income.

Slowing direct tax collections may push govt to reset its budget math for FY20 LivemintNEW DELHI: Slowing tax collections may prompt India to cut its FY20 direct taxes target from the ₹13.8 trillion estimated in the interim budget, necessitating a ...

Decoding income tax exemptions LivemintEET stands for exempt-exempt-taxable where an investor can receive two exemptions on investments.The last exempt implies that lump sum amount received at ...

First 100 days of Modi 2.0 could see tax cut, GST rejig, bank reform Economic TimesNEW DELHI: With the major event risk of election out of the way, analysts on Dalal Street have started speculating on what measures the government may unveil ...

Looking to save tax? Here are 7 ways to take charge of your investments The News MinuteWe are in a new financial year and it's the time to file taxes. Along with it, it is now the perfect time to plan your finances and tax-saving options. So, if you are ...

Israeli Court Rules Bitcoin Is Not a Currency in Court Case Over Taxes on BTC Gains CointelegraphThe ruling is a setback for crypto entrepreneur Noam Copel, who will now have to pay tax on $830000 in profits he made by selling bitcoin.

San Jose: New city survey shows voters hesitant on new tax for homelessness San José SpotlightAfter saying “yes” to hundreds of millions of dollars in general obligation bonds in recent years, new polling shows San Jose voters aren't so keen on supporting ...

Hotels, realtors move Delhi HC over Input Tax Credit issue Economic TimesA writ petition was filed in the Delhi High Court on Monday, challenging a change in the GST framework this year, whereby input tax credits were denied.

How is long-term capital gains tax on sale of property calculated Economic TimesThe CII of 2019-20 has yet not been announced. To arrive at the capital gain, you will have to reduce the indexed cost of acquisition from the selling price.

Directorate General of GST Intelligence issues notices to auto ancillaries over tax evasion ETAuto.comMumbai:The Directorate General of GST Intelligence (DGGSTI), intelligence arm of the indirect tax department, has issued notices to multiple ancillary ...

Samsung's Founding Family Faces a $7 Billion Estate Tax BloombergThe lives of the rich and famous are news fodder everywhere. But in South Korea it's an expected death that has the country enthralled. The country's wealthiest ...

Manpasand Beverages MD, CFO arrested in Rs 40 crore GST tax invasion and invoice fraud case Business TodayThe Goods and Services Tax (GST) department officers have arrested the top executives of Vadodara-based Manpasand Beverages for creating fake company ...

'It's disappointing': Property taxes to 'prop up' Victoria's books — again 3AWTreasurer Tim Pallas will hand down his fifth state budget today, forecasting $11.3 billion in surpluses over four years. That's a better result than many predicted ...

I-T dept set to bring changes in tax audit report for charitable trusts Business StandardThe income tax department is set to bring changes in the tax audit report for charitable trusts to check misuse of funds, including foreign donations. This will be ...

US Income Tax Payers Can Now Get Refunds in Bitcoin CoinDeskIncome tax payers in the U.S. now have the option to receive their federal and state refunds in bitcoin. Blockchain payments processor Bitpay announced the ...

They Got Rich Off Uber and Lyft. Then They Moved to Low-Tax States. The New York TimesMeet the semiretired millennials who left California for low-tax, low-stress places like Texas, as their former start-ups stampede toward the stock market.

Income Tax Alert! CBDT modifies Form 15H. Know the changes here Times NowNew Delhi: The Central Board of Direct Taxes (CBDT)recently revised the rules applicable in the filing of Form 15 H. The new rule will take into account the ...

Tax cuts, robust banking sector can revive private investment Economic TimesNEW DELHI: Government capital expenditure has been the highlight of India's investment story so far, with private funding lagging, but independent economists ...

Dividends from equities are tax-free for investors Economic TimesDilip Lakhani Senior Chartered Accountant, answers queries from our readers on income tax and other levies.

Tax optimiser: How salaried Karthik can save Rs 1 lakh tax via perks, NPS Economic TimesNot only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own for up to Rs 50000. You can reduce your tax ...

'Sin' taxes must rise INQUIRER.netLegislators are expected to be busy in the next two weeks tackling the issue of whether taxes on so-called “sin” products such as cigarettes and liquor are high ...

Steven Mnuchin Refuses to Comply With Subpoena for Trump’s Tax Returns The New York TimesWASHINGTON — Treasury Secretary Steven Mnuchin on Friday refused to comply with a congressional subpoena to hand over President Trump's tax returns, ...

Death, taxes and flying a gigantic American flag: Camping World CEO is certain he’s right in fight with city hall MarketWatchMarcus Lemonis, chairman and CEO of Camping World, says despite lawsuit, he won't take down the 3200-square-foot American flag that violates an ordinance ...

Tumakuru City Corporation officials visit citizens’ homes to collect taxes Times of IndiaBENGALURU: At a time when city corporations across the state are struggling to step up tax collections, a young IAS officer, T Bhoobalan, is changing the rules ...

Election results 2019: Many hope NDA-II to roll back LTCG tax on equity LivemintWith clear trend suggesting the NDA-II forming the government, many hope that the government will review the unpopular long term capital gains tax on equity ...

Reduce tax on ATF or include it under GST: Ajay Singh, SpiceJet Economic TimesIf we can address some of the structural issues bugging aviation sector, there are many years of good growth ahead of us, said Ajay Singh, Co-Founder, ...

Documents required for filing ITR Economic TimesThe government has notified the income tax return (ITR) forms for FY 2018-19. This means that you can now start collecting the documents need to file your ITR ...

GST filing to get simpler! New single tax returns form to be rolled out in July Business TodayThe new simplified returns filing format, approved by the GST Council last July, is finally ready to be rolled-out after being deferred twice.

Income Tax officers to fast track disposal of appeal cases LivemintThe income-tax department has said it will undertake expeditious disposal of appeal cases, and look into taxpayer concerns of adjustment of past tax demands ...

Charity Sustrans calls for city workplace parking tax BBC NewsA workplace parking tax on large employers should be considered in Welsh cities, a charity has told BBC Wales. Sustrans Cymru said city councils could tax ...

Vic premier defends taxes ahead of budget The Canberra TimesTaxes are increasing in Victoria, but Premier Daniel Andrews says it's so his re-elected government can do more than promised and not fill a $5.2 billion reve...

Switzerland Votes ‘Yes’ to Being Tax Home for Big Business BloombergSwitzerland approved an overhaul of the corporate tax code, choosing to stay an attractive base for companies like Procter & Gamble, Vitol SA and Caterpillar ...

A Tax That Could Fix Big Tech The New York TimesPutting a levy on targeted ad revenue would give Facebook and Google a real incentive to change their dangerous business models.

Trump tariffs threaten to drown gains from tax cuts | TheHill The HillPresident Trump's escalating trade war with China is threatening to wash away the positive economic effects from his signature tax cuts, which could endanger ...

Ontario Liberal MPs eye 'soda tax' idea for October election campaign CBC NewsA "sugar sweetened beverages levy" or what is more commonly known as a soda tax, is included in a list of Ontario caucus priorities obtained by CBC News.

Judge: county's property tax error cost taxpayers millions Associated PressCLEVELAND (AP) — A judge says about 3000 Ohio property owners are owed millions because of a decade-old error calculating property taxes. Cuyahoga ...

You may pay tax on FD interest income at accrual stage or when bank pays up LivemintI have a few fixed deposits (FDs) amounting to ₹30 lakh with HDFC Bank Ltd. I will soon move to the UK and become a non-resident Indian (NRI). I will need this ...

Clarity on angel tax, effective implementation of Press Note 2 among many things startups want from new government Moneycontrol.comClarity on angel tax, data privacy and a sharp e-commerce policy is what the startup ecosystem is looking forward to from the new government as the Narendra ...

Arvind Panagariya on corporate tax, lower tariffs & fewer ministries Economic TimesFor 70 years, the automobile industry has been protected with 100 plus kind of tariffs. Why should Indian consumers have to pay one and a half times the price ...

Hurricane Katrina ? How To Use Your Business Loss To Get A Refund on 2004 Taxes

Tax Tax