Natural Disaster Relief
If your business is hit by a natural disaster, don't forget to claim a tax deduction for any losses you incur. If your area qualifies for federal assistance, you can claim the deduction on the return for the year of the loss or on the prior year's tax return.
To claim the deduction, you must be able to document the loss. This includes proving you own the lost or damaged property and proving your basis in the property, which is the amount you paid for the property, plus improvements, less depreciation. Any insurance reimbursements should be deducted from the amount of the loss.
Although nothing can replace the business you worked so hard to build, at least these tax deductions offer a bit of a silver lining.
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