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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13343
Experience:  15years with H & R Block. Divisional leader, Instructor
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We ( Joseph Fisheries Corp.) received a $25,00.00 grant from

Customer Question

We ( Joseph Fisheries Corp.) received a $25,00.00 grant from New York State to reimburse some of your revenue loss resulting from Superstorm Sandy. Is it taxable income or not?
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: My email is***@******.***. Is a grant from the state for losses due to a natural disaster taxable?
JA: Is there anything else important you think the accountant should know?
Customer: The relief program is called "New York Superstorm Sandy Fishery Disaster Relief Program"
Submitted: 1 month ago.
Category: Tax
Expert:  Robin D. replied 1 month ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 1 month ago.

If you, personally, received a grant in relation to Hurricane Sandy, chances are that grant isn't taxable to you but when a business receives a disaster relief grant it is generally taxable.

Section 61(a) provides that, except as otherwise provided by law, gross income means all income from whatever source derived.

Section 139(a) excludes from gross income any amount received by an individual as a qualified disaster relief payment. Section 139(b) provides, in part, that the term “qualified disaster relief payment” means any amount paid to or for the benefit of an individual.

https://www.irs.gov/irb/2005-30_IRB/ar07.html

There were numerous relief provisions but not for this unfortunately.