Businesses: Don't Forget the Disaster Tax Deduction
Businesses have many tax deductions available to them. Those that were in the path of storms like Hurricane Sandy last year might be able to look to the disaster tax deduction, as well as some tax filing extensions.
The Disaster Tax Deduction
The disaster tax break is a great tax break for some. And the interesting thing about the disaster tax deduction is that it doesn't only apply to Hurricane Sandy victims.
In fact, the deduction for casualty loss applies not only to any federally designated disaster area, but it can apply to loss from theft, fires or floods as well.
There are a few limits to the tax breaks. Businesses can't deduct the amounts that were reimbursed by insurance, for one. Another limitation is the amount. First, the business must reduce the amount it can claim by $100. Then, it must reduce the total casualty loss by 10% of its adjusted gross income.
To claim these losses, the business needs to file a Form 4684.
Tax Filing Extension
Moving on to other tax relief afforded to disaster victims, the IRS is allowing businesses to file later than their original filing deadline.
That's the case for deadlines that occurred starting in late October. As a result of the extension, affected businesses will have until April 1, 2013, to file these returns and pay the taxes due.
This includes the fourth quarter individual estimated tax payment, which was supposed to be due on January 15, 2013. It also includes payroll and excise tax returns and their accompanying payments. For a full list of which areas qualify for these deductions, have a look at the IRS' notice.
While you might not get your damaged property back, a tax break is better than nothing.
Follow FindLaw for Consumers on Google+ by clicking here.
Related Resources:
- Disaster Assistance and Emergency Relief for Individuals and Businesses (IRS)
- Top Tax Myths Debunked (FindLaw)
- 3 Overlooked Small Business Tax Deductions (FindLaw's Free Enterprise)
- Browse Tax Lawyers by Location (FindLaw)