What To Know About Storm Damage and Taxes
Did you know that in some circumstances storm damage to your Dripping Springs, business may be deductible on your taxes?
If you meet the requirements filing a claim with your insurance may not only help you hire a local damage restoration service to help with repairs, but also may qualify you for a tax break. Here’s what you may need to know
1. What Qualifies
Filing a claim for a tax deduction on damages caused to your business by a storm may qualify you if the damages comes from a force of nature. These forces include earthquakes, tornadoes, hurricanes, and blizzards. The claim must be filed with the insurance company first before you can qualify.
2. What Does Not Qualify
A storm damage loss deduction will not include damages incurred by loss or deterioration which occurs over a length of time. In many cases your business may also not be eligible to get a deduction for any damaged which you have already be reimbursed for. It’s highly recommended that you talk to a professional prior to claiming a deduction to ensure the damages do not fall into one of these categories.
3. Conditions May Apply
Certain conditions may apply before storm caused damage to your business can be considered to be tax deductible. In most cases you must first have filed a claim with your insurance company. Other conditions may depend on which tax credit or break you are applying for. Some are only for non-reimbursable damages, while others are for damages sustained during specific storms. It’s best to talk to a professional about which deductions your business is eligible for.
If you need help claiming a credit for storm damage on your taxes a professional can help you know what qualifies, and how to correctly fill out that information. Remember, to use this option you will have need to have filed a claim with your insurance company first.