CHAPTER 17 Casualty and Theft Losses

Floods in Arkansas and Missouri, straight-line winds in Georgia and Louisiana, fires in California and Tennessee, Hurricane Harvey in Texas and Louisiana, and Hurricane Irma in Florida—these are just some examples of the types of weather-related events that may have done severe damage to your business property in 2017. Terrorist attacks and civil riots are other means of causing damage to business property as are man-made 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, you may have a gain rather than a loss. The law allows you to postpone ...

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