If the net income of a displaced business is very low in one or both years prior to displacement, can the payment be based upon a different period?
Yes. Average annual net earnings may be based upon a different time period when the agency determines it to be more equitable. 81. ยง24.305(e). If a business experienced a loss in one of the two years, should the amount of the loss be offset against the net income from the other year, or should the income be considered as zero for the year in which the loss was incurred? If a loss of net income occurs in one year and a gain in the other year, the income of the year in which the loss was incurred should be computed as zero when determining the average net income for the 2-year period.
Related Questions
- CFR 24.304. If the nature, character, or type of business established after displacement is different from the business displaced by acquisition, would it be eligible for a reestablishment payment?
- If the nature, character, or type of business established after displacement is different from the business displaced by acquisition, would it be eligible for a reestablishment payment?
- If the net income of a displaced business is very low in one or both years prior to displacement, can the payment be based upon a different period?
