J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

CHAPTER 17

Casualty and Theft Losses

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2012 that had expired at the end of 2011. Check the online supplement in February 2013 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2012 returns.

Tornadoes in Kansas, wildfires in New Mexico and Colorado, winter storms on the East Coast, landslides in Hawaii, and hurricanes in the Gulf Coast—these are just some examples of the types of weather-related events that can do severe damage to your business property. Terrorist attacks are another 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 reporting of the gain if certain steps are taken.

In this chapter you will learn about:

• Casualties and thefts
• Condemnations and threats of condemnation
• Disaster losses
• Postponing gain on casualties, thefts, and condemnations
• Deducting property insurance and other casualty/theft-related items
• Certain ...