Florida is known as the Sunshine State for good reason: Millions of people flock here every year to escape long, harsh winters and bask in the sun. While there are many perks to living in Florida, such as high temperatures and gorgeous, exotic wildlife, we also must contend with some difficult natural events, such as floods, tornadoes, and hurricanes. These events can spell financial ruin for unlucky residents, and this is especially true if those affected are not aware of how to properly file casualty losses at tax time.
Casualty Loss Defined
A casualty is defined as the damage, destruction, or loss of property that occurs as a direct result of an event that is sudden, unexpected, or unusual. A casualty loss that occurs in a region which the President has declared a disaster area is known as a disaster loss. Casualty losses must be taken in the year in which they occurred. Disaster losses can be taken in the year of the loss, or the tax year prior.
Casualty losses are further subdivided into two types: business and personal. Business losses are fully deductible without limitations, but personal losses are a bit more complicated to calculate. The team at Price Advantage Accounting has more than 40 years of experience with assisting taxpayers through the task of casualty loss-related tax deductions. Our team will work with you to document each loss and help you determine vital details necessary for accurate filing. With our help, you can strengthen your finances in the wake of property loss.
Taxes are a headache without the added pressure of recovering from a natural disaster. Don’t try to go it alone if you’re picking up the pieces of your home or business after a storm. Turn to Price Advantage Accounting—we have the knowledge and resources to help you move forward into financial security after a disaster.