Can You Deduct Storm Damage From Your Business Taxes? 3 Factors To Consider
Is It Possible To Deduct Storm Damage From Business Taxes? 3 Things To Think About
Flooding, hurricanes and other types of violent weather events can cause severe storm damage to your Portland, ME, business. The removal of flood water and the repair and restoration of one or more areas of your building may force you to close your business until the damage is fixed. You may be able to recover some of this loss when you file your taxes; however, there are a few questions you might want to ask yourself before you try to claim these damages.
1. Did I File an Insurance Claim?
Before you try to claim damage that occurred from flooding or other types of weather-related events, it is important to ask yourself if you filed an insurance claim and whether you received any compensation. If so, you cannot deduct such losses from your taxes. While it is permissible to receive recompence, you cannot file a claim and then receive a tax discount as well. If you have business insurance, check with your agent concerning your options before you file.
2. How Much Can I Claim?
Not all storm damage to your businesses is tax deductible, and the rules are typically different for commercial properties. For example, homeowners are bound by certain restrictions that involve the total amount of their gross income. As a business owner affected by a weather event, you could be exempt from these caveats. The total amount you can claim will likely depend on past insurance claims and the type of damage your property endured.
3. How Long Do I Have To File?
You may have delayed in your filing as you wait for your flood damage and restoration service to finish repairs to your business in order to have specific cost amounts instead of estimations. While this may help you claim a larger refund, it is a good idea to contact your accountant or local tax office to ask about filing deadlines.
When storm damage impacts your Portland, ME, business, the monetary loss can be considerable. Understanding how to claim it on your taxes before you file may result in faster compensation and avoid delays that could harm your business in the long run.