Katrina Tax Help


Katrina Emergency Tax Relief Act of 2005 – KETRA 2005

  • Enacted September 23, 2005
  • Expected overall taxpayer savings $6.1 billion,
  • Federal tax relief available for disaster area taxpayers, with
  • Special provisions for Katrina “Core Disaster Area” taxpayers.

Core Disaster Area Parishes

Orleans, Jefferson, St. Tammany, St. Bernard, St. Charles, Plaquemines and 29 other Louisiana Parishes.

The six named parishes above have been granted an automatic “extended filing deadline” of, October 16, 2006, for both Federal and Louisiana State Returns.

Information Required to Calculate Loss* or Gain under KETRA 2005

  • Original cost plus any improvements (the basis),
  • Insurance reimbursements,
  • The Fair Market Value prior to the storm, and
  • The Fair Market Value following the storm.

* Note: Any calculated loss is not subject to 10% AGI or $100 floor deduction.

Other KETRA Provisions

  • Look-back Rule for earned income and child tax credits,
  • Temporary suspension of limits on charitable contributions,
  • Additional exemption for housing Katrina displaced persons – a $500 per person (limit 4 – no rent may be charged),and this does not affect their personal exemptions.
  • Increased mileage rate for charitable use of vehicles, and
  • Tax-favored withdrawals for retirement plans.

Louisiana Sales Tax Provisions

  • Sales tax for casualty items not covered by insurance may be recovered,
  • Forms are available from Louisiana Department of Revenue (LDR), or
  • Go to¬†LDR for these and other forms.

** Executive Tax Service is a full service professional tax preparation and tax planning company located in Metairie, Louisiana, assisting residents of Louisiana, other states, and other countries. Executive Tax Service provides personal consulting and tax preparation services. Our personnel have a thorough knowledge of State and Federal tax codes. We are available on a year round basis.