Deadline Extended for Areas Affected by Hurricane Ike
Saturday September 13, 2008
The Internal Revenue Service has extended deadlines for taxpayers in the Texas and Louisiana struck by Hurricane Ike. Taxpayers in these areas have until January 5, 2009, to file any tax returns and make estimated tax payments. Corporate returns that were due on September 15th and personal tax returns that will be due on October 15th can be postponed until January 5th. Payroll tax deposits are due on September 22nd for any deposits that were due between September 7th and 22nd.
Taxpayers should write "Hurricane Ike" across the top of any payment vouchers or tax returns to let the IRS know that they qualify for the extended deadlines.
Taxpayers suffering damage can deduct their casualty losses on either their 2007 or their 2008 tax returns. Claiming the loss on a 2007 return could result in a quicker refund, thereby creating some cash flow to help with recovery efforts.
These extended deadlines are available to business and individuals in the following Texas counties:
- Angelina,
- Austin,
- Brazoria,
- Chambers,
- Cherokee,
- Fort Bend,
- Galveston,
- Grimes,
- Hardin,
- Harris,
- Houston,
- Jasper,
- Jefferson,
- Liberty,
- Madison,
- Matagorda,
- Montgomery,
- Nacogdoches,
- Newton,
- Orange,
- Polk,
- Sabine,
- San Augustine,
- San Jacinto,
- Trinity,
- Tyler,
- Walker,
- Waller, and
- Washington.
- Acadia,
- Beauregard,
- Calcasieu,
- Cameron,
- Iberia ,
- Jefferson,
- Jefferson Davis,
- Lafourche,
- Plaquemines,
- Sabine,
- St. Mary,
- Terrebonne,
- Vermilion, and
- Vernon.
More information:
- Louisiana Hurricane Ike Victims Qualify for IRS Disaster Relief (IRS.gov)
- Texas Hurricane Ike Victims Qualify for IRS Disaster Relief (IRS.gov)
- IRS Gives Taxpayers in Area Threatened by Ike Until Sept. 22 To File Corporate and Individual Estimated Taxes (IRS.gov)
- Casualties, Disasters, and Thefts (Publication 547)
- Disaster Recover Assistance Loans from the SBA (About US Business Law / Taxes)
- Using Photography to Recover from Disasters (About Photography)
- Disaster Recovery Tips for Businesses (About Small Business Information)
- Applying for FEMA Assistance (About US Government Info)
- Dealing With Banks and Loans after a Hurricane (About Banking)
- Filing Insurance Claims after a Disaster (About Personal Insurance)
- Documenting Disaster Losses (About US Business Law / Taxes)
- Disaster/Casualty Loss Tax Practice Guide (39-page Word document from the American Institute of CPAs)
I have found lots of information about Treasury Inflation Protected Securities and how they are taxed in an inflationary environment, but nothing about deflation except you are guaranteed a return of original principal. If deflation occurs in a given period, is the principal reduced for tax purposes in the next period, and does that become a loss for tax purposes in that period? What about taxes due at maturity? If there is an overall loss for the duration of the bond, the original principal is returned. However, what is the basis for tax purposes? Is it the original principal meaning no taxes due)or the deflation-reduced principal?
Please clarify. I have tried everywhere including the IRS’ own publications.
As with other bonds, you are taxed on the interest payments, and on any gain or loss when the bond is sold or redeemed. Interest on treasury bonds is taxable at the federal level, but exempt from state and local taxes. If the inflation-indexed principal portion of the bond increases in value during the year, that increase is reported and taxed as original issue discount. The Treasury Dept reports the increase or decrease of principal due to inflation on form 1099-OID, according the this page on TIPS and taxes. Your basis in the TIPS bond is your initial investment (purchase price), plus any OID, plus any commissions paid to buy and sell the bond.