How To Determine When Storm Damage Is Deductible

11/16/2020 (Permalink)

Some expenses caused by a storm might be tax-deductible

How To Determine When Storm Damage Is Deductible

When a storm sweeps through your community, it can leave a path of destruction both physically and financially. A company in Louisa, VA, should investigate all of its options in the wake of storm damage. It's easy to miss out on potential relief options such as signing up for disaster assistance in the form of low-interest loans. Insurance is also a big source of financial relief depending upon a company's policy. In general, a company's insurance will pay for damage as the result of high winds, hail, heavy snow and rains. In the case of a flood, a business will be covered for some damages if it has a flood insurance policy.

Professional Advice
Some expenses caused by a storm might be tax deductible. The rules for claiming tax write-offs on the federal and state level can be a little confusing so it makes sense to consult with professionals on what costs and expenses to claim. These professionals might be of help:

• Tax accountant or professional
• Insurance agent
• Company accounting department
  Storm damage remediation franchise

In general, expenses paid for by the insurance company will not qualify for a tax deduction. However, expenses above and beyond what is covered by insurance can often be written off as losses and therefore reduce the amount of taxes that must be paid that year.

Quality Cleanup
Another option for improving financial results is for a company to work with a local storm mitigation team. The fast response of technicians can get to storm damage before it gets worse and causes such secondary damage as mold growth or degradation of materials. The faster water damage is addressed the less it is likely to cost. A professional team will also be able to help with keeping good records in terms of damages and costs. This is important both when dealing with the insurance company and the tax man.