Posted on January 19, 2006 at 16:48:21:
2005 was a wild year for weather; hurricanes followed by more hurricanes. Even though Katrina got the most publicity, Rita and Wilma quickly followed.
Congress has passed some tax relief, and more seems to be following. Taxpayers who itemize can deduct all uninsured casualty losses from the hurricane, without the usual $100 deductible per occurrence; nor will they be limited to the 10-percent-of-adjusted-gross-income offset, even if they claim the loss on 2005 returns.
If hurricane victims need to tap their retirement accounts, there will be no penalty on withdrawals under $100,000 by those under 59 1/2. However, taxes will be due on the money. Victims can borrow similar amounts from the company plans, with deferred repayment