Thursday Apr 13, 2023
Business: How property and casualty losses affect the bottom line of a business
Casualty losses can actually be deducted from income tax, but how it depends on the specific situation and the circumstances of the loss. A casualty loss can include any damage or theft of a business’s property, such as a tornado, car accident, or theft.
It’s important to keep detailed records of losses in order to qualify for deduction. What’s also important is to pay close attention to all the tax implications of the losses and factor those losses into your overall business financial plan. .
Methods for handling casualty losses in a business, such as setting up a separate line in the business' accounting record and ensuring the business has proper insurance coverage to cover any losses incurred. It is important to work with an insurance agent every year to make sure the business has the necessary coverage for any potential disasters that could occur, such as floods, tornadoes, hurricanes, or fires.
0:01:07 Understanding Casualty Losses in Light of Recent Natural Disasters and Their Deductibility
0:03:40 Discussion on Casualty Losses and Insurance Coverage for Businesses
0:06:23 Working with a CFO and Insurance Advisor to Ensure Proper Coverage
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Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
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