Deducting Business Casualty Losses: You Don’t Need a Disaster

Let’s talk disasters.
Okay. This isn’t an upbeat subject, but if you’re ever hit with a disaster, you’ll be glad you read the full article.

You see, the article explains, in detail, the crucial distinction the IRS makes between…

Business casualty losses
Personal casualty losses

DEFINITION: In this context a “casualty” is a sudden, unexpected, and unusual event such as a fire, flood, freeze, earthquake, storm, etc.

It’s important to know that, when it comes to tax deductions, the IRS favors business losses over personal losses.

To get a tax deduction for a personal property casualty loss, you need to have suffered a federally declared disaster. (Not all that common.)

That’s not the case when it comes to deducting a business property casualty loss. No federally declared disaster is necessary!

The bottom line?

When you suffer a business disaster,
you may qualify for a valuable business deduction.

You may even be able to deduct the casualty loss on your prior year’s tax return and get a quick refund.

To find out more about how business casualty loss deductions can help you in a time of need…