"Some rules were also revised like the 'Rev. Rule 95-22' which considers the funds received for the primary residence as well as scheduled property such as jewelry, pieces of art, coins, etc. which had been insured, as funds for a single item of property." (IRS, Tax Law Changes Related to Hurricanes Katrina, Rita and Wilma) These funds were to be considered as a "common pool" of proceeds from which the gains realized by the taxpayer could be to the extent of the amount exceeding the expenses after meeting a suitable replacement property. This revised rule also clarifies that the replacement property could refer to the residence being replaced or any scheduled private property "in any proportion." (Kess, Hurricane Katrina tax relief); (Hurricane Katrina Recovery Assistance Programs)
For those suffering casualty losses due to presidentially declared disasters like Hurricane Katrina a federal income tax deduction is provided which means that victims from affected regions who have a deductible loss can opt to deduct that amount from their tax return of the year before, i.e. 2004. For victims who had already filed their tax returns for the previous year the deductible loss amount for the previous year could be claimed through filing a revised return -- Form 1040X for individuals and Form 1120X for corporations. (Kess, Hurricane Katrina tax relief); (IRS, Tax Law Changes Related to Hurricanes Katrina, Rita and Wilma); (Hurricane Katrina Recovery Assistance Programs)
Several retirement funds were also made available in the aftermath of Hurricane Katrina. Victims, who suffered economic loss of their primary residence located in the hurricane-affected region on 28th August 2005, could take loans up to $100,000, an increase of $50,000 from the earlier limit, from qualified retirement plans. These loans had to be availed before 1st January, 2007. In addition, the repayment period was extended from five years to six years. Recipients of such suitable retirement distributions were exempted from paying the supplementary 10% tax on early distributions. According to the revised law, the compulsory twenty-percent withholding for qualified distributions was also not required. (Kess, Hurricane Katrina tax relief); (IRS, Tax Law Changes Related to Hurricanes Katrina, Rita and Wilma); (Hurricane Katrina Recovery Assistance Programs)
Another financial concept used in the interests of Katrina-affected people was re-contributions to retirement plans. Eligible individuals in the affected regions, who had availed a "qualified first-time homebuyer distribution" or a "hardship distribution" from a 403(b) or 401(k) annuity from the IRA with the intention of building or buying a house in the affected area between February 25, 2005 to August 29, 2005 but could neither build nor purchase were provided with the option of re-contributing the money in a suitable retirement plan provided that the re-contribution was made between 25th August, 2005 and 28th February, 2006. "This amount would be considered as a payment in a direct rollover." (IRS, Tax Law Changes Related to Hurricanes Katrina, Rita and Wilma)
Many of the provisions offered in "Katrina Emergency Tax Relief Act of 2005" were expanded in the subsequently declared Gulf Opportunity Zone Act of 2005. (IRS, Tax Law Changes Related to Hurricanes Katrina, Rita and Wilma) This offered educational aid by extending the "Hope and Lifetime Learning" credits meant for students who were studying in the Gulf Opportunity Zone with affected counties in Alabama, Louisiana and Mississippi in the tax years 2005/2006. The educational assistance limit was increased to 100% of the initial $2,000 and 50% of the subsequent $2,000 up to a total $3,000 per student. The "Lifetime Learning Credit" was also increased to 40% from the initial 20%. Non-business debts taken by people residing in the Katrina affected regions were also cancelled only in cases where the debt was not secured by property outside the affected regions. (Kess, Hurricane Katrina tax relief); (IRS, Tax Law Changes Related to Hurricanes Katrina, Rita and Wilma); (Hurricane Katrina Recovery Assistance Programs)
Provisions were also made in the new law for suspension of charitable limits in case of specific charitable contributions. Deduction for qualified charitable contributions by individuals was permitted up to the total amount by which the individual's contribution surpassed the deduction for other charities. Any amounts contributed beyond this limit are usually carried forward to subsequent taxable periods. Corporations were also permitted to make qualified contributions only towards the relief operations of Katrina and the hurricanes which followed it such as Rita or Wilma. Here, qualified contributions refers to cash contributions provided in the period between 28th August 2005 and 31st December 2005...
Financial Management Decision Understanding Basic Finance Terms Generally, it is beneficial to have a basic understanding of financial concepts and terminology before going into business independently. Financial management refers to the process of calculating anticipated sources of profit and comparing them to anticipated expenses and other variables and contingencies. In principle, financial management is used to determine what prospective ventures are likely to be profitable and to identify those that are too
Financial Management of Not-For-Profit Organizations: Generally, financial management of not-for-profit organizations is similar to the process of financial management in the profit making sector in several aspects. Nonetheless, there are several major differences that contribute to a different focus of a not-for-profit financial manager. In the commercial sector, the for-profit enterprises mainly focus on capitalizing shareholder value and overall profitability. On the contrary, not-for-profit organizations have the basic aim of providing
Financial Statement Analysis The following is an equity research report on Starbucks. The company competes primarily in the quick service food industry, where it holds the #5 market share in the United States, and #1 in its segment of coffee (QSR Magazine, 2011). The company had revenues last fiscal year (ended 10/2/11) of $11.7 billion and net income of $1.245 billion. The current stock price is $43.91, which gives the company
Despite this fundamental difference, financial and compliance managers work together as healthcare organizations make decisions to lower cost, increase revenue, and improve care. The concept of lowering cost while improving care presents a complex demand, and requires both financial and compliance officers to possess fundamental management knowledge, and similar professional skills in order to implement accounting and ethical standards (Buelow, et al. 2010). For example, a legal requirement or
Working capital reduction is not always a bad thing -- tightening receivables and inventory turns is often considered to be good financial policy. In the case of Unilever, it is important to synthesize the two statements. We can see, for example, that "unusual expense" is the category most responsible for the change in working capital. At this point, it would be advisable to delve deeper into the comments in the
Researchers have an occasion to further organizational science and to make research practical by producing information that can impact changing organizational forms and circumstances. Pragmatically, academic researchers are not likely to get access to a company that is going through change unless the practitioners believe the research will be helpful (Gibson & Mohrman, 2001). There have been a number of calls to augment the significance and effectiveness of organizational science
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now