Salvage tax breaks under new disaster-relief laws — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Salvage tax breaks under new disaster-relief laws

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in Employee Benefits Program,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

In the waning days of last year, the president inked the Gulf Opportunity Zone Act of 2005. This new legislation, following close on the heels of the Katrina Emergency Tax Relief Act (KETRA), includes various tax measures benefiting victims of Hurricanes Katrina, Rita and Wilma.

Advice: Don’t think these are just Gulf-region tax breaks. Even if you don’t live in the disaster area, you still may be entitled to claim special deductions when you file your corporate 2005 return. What’s more, some of the new law provisions extend into 2006 and beyond.

Here’s a quick rundown on the key tax provisions for business owners:

Employee retention credits. Qualified employers in the Katrina area can claim a 40 percent tax credit of up to $6,000 in wages paid to employees between Aug. 28 and Dec. 31, 2005. Qualified employers in the Rita disaster area can claim the credit for wages paid between Sept. 24 and Dec. 31, 2005. And in the Wilma ...(register to read more)

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