As a reminder for all of our friends and clients with properties in Texas, the Texas Department of Housing and Community Affairs (“TDHCA”) rules require notification of a casualty loss within 30 days of the event. If your multifamily rental property sustained damage from Hurricane Harvey, there is a “Property Damage from Hurricane Harvey” form required to be completed no later than Sept. 25, 2017, that can be found on TDHCA’s website at: http://www.tdhca.state.tx.us/pmcomp/casualty-loss/disaster-loss.htm.
Revenue Procedure 2014-49 provides relief to Housing Tax Credit (“HTC”) properties impacted by presidentially-declared disasters from carryover through the compliance period. Under 2014-49, Owners are allowed to continue claiming credits on buildings affected by a presidentially-declared disaster provided that the development is fully repaired within the IRS’s timeline for restoration. To determine the credit amount during the restoration period, Owners should use the building’s qualified basis as of the end of the year preceding the disaster. Casualty loss from presidentially-declared disasters is not reported to the IRS on forms 8823.
If you are in need of any other assistance related to Casualty Loss from Hurricanes Irma, Harvey or any other presidentially-declared disasters, please contact Joel McDowell at (205) 271-5508 or at Joel.McDowell@TidwellGroup.com.