My friend had his condo on the beach destroyed by the most recent hurricane. The 31 unit building will have to be gutted and rebuilt. He is anticipating his share off the HOA insurance deductible to be $40,000. I know there is a provision in the Corona Virus relief bill that allows an investor to withdraw up to $100,000 and allocate the income over a three year period. Is there any such bill that would help him? If so, would the income he has already taken this year reduce the amount he could withdraw?
If his location is declared a storm disaster area for this hurricane, he should qualify for a distribution up to 100k subject to similar rules as a virus distribution. The amount he already withdrew prior to the storm will not count against the 100k limit.