J.K. Lasser's Small Business Taxes 2023

CHAPTER 17Casualty and Theft Losses

• Casualties and Thefts
• Condemnations and Threats of Condemnation
• Disaster Losses
• Deducting Property Insurance and Other Casualty/Theft‐Related Items
• Disaster Assistance

Alert

At the time this book was published, Congress was considering tax changes that could affect 2022 tax returns and planning for 2023. Check the online Supplement in February 2023 at www.jklasser.com or www.BigIdeasForSmallBusiness.com to see what changes have been enacted and when they become effective.

Wildfires in the West, severe winter storms in the Midwest, flooding in Kentucky, and tropical storms and hurricanes in the South—these are just some examples of the types of weather‐related events that may have done severe damage to your business property in 2022. In addition, the Surfside building collapse in Florida in 2021 and the Deepwater Horizon incident in 2010 are other examples of FEMA‐designated disasters. Terrorist attacks and civil riots are other means of causing damage to business property as are accidents, such as oil spills. If you suffer casualty or theft losses to your business property, you can deduct the losses. You may also suffer a loss through condemnation or a sale under threat of condemnation. Again, the loss is deductible. Certain losses—those from events declared to be federal disasters—may even allow you to recover taxes you have already paid in an earlier year. But if you receive insurance proceeds or other property in return, ...