Storm Damage: Is It Tax Deductible?

5/9/2019 (Permalink)

Go to fema.gov page to see if your business was affected in a nationally declared disaster area

Storm Damage: Is It Tax Deductible?

Did you know that your Carpentersville,IL, business’s storm damage expenses may be tax deductible? If you filed an insurance claim and the damage was not covered by your commercial policy, it is very likely that you can deduct related expenses from your taxes. Here is the process that you should follow to maximize your deductions.

1. Find out if you are in a disaster area. Go to fema.gov or browse IRS’s Tax Relief in Disaster Situations page to see if your business was affected in a nationally declared disaster area. There may be different, more generous tax rules that apply - some filers even get extensions in this type of circumstance.

2. Calculate your deduction. If you need to, find an online tool or calculator that can help you figure out what your deduction amount should be for nonbusiness storm damage at your commercial building, such as your personal vehicle that was destroyed.

3. Read tax publications. Specifically, you will want to use IRS Publication 547, which deals with disasters, casualties and thefts, to make sure that you are following proper procedures when filing your business taxes and deducting damage expenses.

4. Figure out your next steps. If you want to write off nonbusiness damage that occurred on your property during a storm, you will have to itemize your deductions. You will need to utilize IRS Form 4683 and Schedule A, as well as the specific instructions that go along with these tax papers. If you are simply deducting commercial losses, itemization will not be necessary.

If you need help dealing with your company’s upsetting damage in addition to your taxes, a local commercial storm damage company should be able to help. Whether you need cleanup, document drying or more detailed restoration, such a business can help you get yourself, your team and your commercial building back to normal.