[StBernard] Governor Blanco secures Congressional support ofrecovery agenda

Westley Annis westley at da-parish.com
Sat Feb 10 14:43:24 EST 2007


The forgiveness of loans is for the Community Disaster Loans given to local
government immediately after the storm, it doesn't apply to SBA loans.

The taxation on Road Home Grants is for those who claimed a loss on their
income taxes. The grant, in the eyes of the IRS, erases that loss meaning
you can't use the loss to offset taxes.


-----Original Message-----

Will someone offer their knowledge about "forgiveness of loans" and also
"taxation on Road Home Grant?"

Does the forgiveness of loans mean that only relating to forgiveness for
local/state governments loans or does it equally apply to homeowners?

Are taxation only applicable to those who chose to deduct losses or does it
apply across the board to everyone who receives a grant, etc.? Thanks. -mj

Governor Blanco secures Congressional support of recovery agenda

Exempt the Road Home Awards from Federal Tax Penalties: Louisiana asks
Congress to exempt homeowners who claimed a casualty loss deduction on their
2005 federal income tax return from having to pay this money back to the IRS
upon receipt of the Road Home grant. Homeowners who received a casualty loss
deduction and decide to rebuild are penalized by having to repay the IRS,
while homeowners who received the deduction and decide to sell their
property and move away are not penalized. Louisiana urges Congress to exempt
tax penalties from the Road Home awards (S.29/H.R.641).

Allow Forgiveness of Community Disaster Loans: Less than two months after
Hurricane Katrina, Congress passed the Community Disaster Loan Act of 2005,
requiring local governments receiving Katrina and Rita aid to reimburse the
federal government. Congress eliminated the possibility of forgiveness, even
though historically, over 90% of Community Disaster Loans have been
forgiven. Louisiana asks Congress to repeal the prohibition which forbids
cancellation of these community disaster loans by the federal government

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