Page 143 - Other Income for Individuals

Disaster mitigation payments

Disaster mitigation payments

 You can exclude from income any amount you receive
that’s a qualified disaster mitigation payment.
 Qualified disaster mitigation payments are most
Disaster commonly paid to you in the period immediately

mitigation following damage to property as a result of a natural
disaster.
payments
 However, disaster mitigation payments are used to
mitigate (reduce the severity of) potential damage
from future natural disasters.
Disaster Disaster  They’re paid to you through state and local
mitigation 05 mitigation governments based on the provisions of the Robert T.
payments payments Stafford Disaster Relief and Emergency Assistance Act
or the National Flood Insurance Act.

Disaster
mitigation Disaster mitigation payments
payments

 You can’t increase the basis or adjusted basis of
your property for improvements made with
nontaxable disaster mitigation payments.

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