This year has been just full of craziness! For many of our clients, current craziness includes the recent derecho (a new vocab. word for me!). The storm has caused significant damage and business interruption, so we have a bit of a laundry list of things that are available for help. Let me run thru them:
For All In Disaster Areas
Tax deadlines are delayed for BakerStarrett clients to 12/15/20. Because FEMA expanded the counties eligible for individual assistance to include Linn, Benton, Boone, Cedar, Jasper, Marshall, Polk, Poweshiek, Scott, Story and Tama Counties, the IRS disaster assistance in the form of a delayed deadline should apply to all of our clients that have not yet filed a 2019 tax return. Penalties and interest will not apply during this time period. As always, do not pay any IRS notice without speaking to us first.
For Businesses & Farmers in Disaster Areas
- Many of our business clients were without power/unable to operate for a period of time. If that is you, don’t forget that you may have business interruption insurance that can help you cover the cost of being down! Check your policy, talk to your agent to see if this may apply to you.
- If you have damage from the storm and your insurance isn’t picking up the full cost of the damage, keep those receipts & records of losses (as well as records of what insurance is covering!). We’ll be asking for them to claim a deduction on your tax return. If you have very large losses that will not be covered by insurance, please speak to us. There’s other tax deductible options available for those with significant losses.
- If your insurance is paying you for loss of property that you aren’t/can’t repair, you may have taxable income UNLESS you are replacing the property (replacing may not mean buying the exact same thing). Very generally speaking, you have 2 years to do so. Please speak to us regarding your specific situation if you have questions.
For Farmers Specifically
We hope there’s more assistance coming. For now, here’s a start of links for assistance available:
- USDA disaster tool: https://www.farmers.gov/recover/disaster-tool
- For livestock lost – payments of 75% of market value can be claimed here: https://www.prnewswire.com/news-releases/derecho-recovery-u-haul-offers-30-days-free-self-storage-in-iowa-301112188.html
- Noninsured crop disaster assistance here: https://www.fsa.usda.gov/programs-and-services/disaster-assistance-program/noninsured-crop-disaster-assistance/index
- Additional assistance for:
- other livestock, bees, etc. https://www.fsa.usda.gov/programs-and-services/disaster-assistance-program/emergency-assist-for-livestock-honey-bees-fish/index
- expected ongoing land problems caused by disaster https://www.fsa.usda.gov/programs-and-services/conservation-programs/emergency-conservation/index
- tree restoration https://www.fsa.usda.gov/programs-and-services/disaster-assistance-program/emergency-forest-restoration/index and https://www.fsa.usda.gov/programs-and-services/disaster-assistance-program/tree-assistance-program/index
On a more general note….pandemic still exists and so do various relief options.
- SBA EIDL Loans applications are still available: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loans
For more details or questions please contact BakerStarrett your Iowa and Midwest Farm CPA experts.