4 Actions To Take When Deducting Storm Damage

11/12/2020 (Permalink)

Some of your expenses can be tax-deductible

Take The Actions Below

If your business in Batavia, IL, is impacted by a powerful storm, you are likely to have costs and expenses that affect the bottom line. In these cases, it is best to look at all possibilities for financial relief from storm damage. If the storm is large enough, there could be options for disaster relief that either provide outright grants of assistance or low-interest loans. You should also contact your insurance agent to maximize payment from this source. Finally, some of your expenses could be tax-deductible so it is important to take the actions below.

1. Contact Your Tax Professional. A tax professional will be your best source of information on what does and does not qualify for a tax deduction. While the federal laws will be fairly uniform across the nation, the rules for state and local tax deductions will vary from place to place.

2. Keep Good Records. Any tax deductions for storm damage will need to be backed up with good records. This means keeping receipts, taking photos of damage and listing all of your company's expenses.

3. Contact a Professional Remediation Company. A reputable storm mitigation franchise can be of help in many ways. A SERVPRO team can arrive on site Faster to Any Size Disaster and begin the cleanup in a matter of hours. They can also be of assistance in coordinating records for insurance payments and tax write-offs. This is critical since anything paid for by insurance will not be eligible for a deduction.

4. Follow All Applicable Laws. Tax policy can be confusing and changes occur each year. Make sure you are claiming all available deductions and following all provisions of the tax laws. Knowing the latest rules for storm damage can save you a bundle the next time your company files its taxes. Having extra money in hand can help you rebuild after a damaging storm.