Starting Your Business/Keeping Tax Records
What are Business Expenses
Casualty Losses
A casualty is the damage, destruction,
or loss of property resulting from an identifiable event
that is sudden, unexpected, or unusual.
- A sudden event is one that is swift,
not gradual or progressive.
- An unexpected event is one that is
ordinarily unanticipated and unintended.
- An unusual event is one that is not
a day-to-day occurrence and that is not typical of the
activity in which you were engaged.
Generally, you can deduct a casualty
loss only in the tax year in which the casualty occurred.
This is true even if you do not repair or replace the damaged
property until a later year.
Business and income-producing property.
Use Form
4684 to report your casualty gains and losses.
Important References
Publication
547
Casualties, Disasters and Thefts
Form
4684
Casualties and Thefts
Instruction
for Form 4684
Form
4797
Sales of Business Property
Instructions
for Form 4797
Form
1040 Schedule A
Itemized Deductions
Form
1040 Schedule D
Capital Gains and Losses