Flooding & Tax Ramifications

Flooding in Middle Tennessee has caused tremendous damage. Much of the damage will not be covered by insurance. If you have suffered damage or loss to property, which is not fully covered by insurance, you may be entitled to a federal casualty loss deduction.

Individuals and Businesses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in greater tax savings, depending on other income factors.

If you have suffered loss as a result of the floods, call Bob Whisenant at 312-9107, Geoffrey Stewart at 312-9017 or Sharon Morrow at 312-9019, and we can discuss the things you should be doing now to protect this potential deduction.

Businesses

If your business has suffered from short-term or long-term closing or if you have been unable to conduct “business as usual” since the flooding last week and you have business interruption insurance, call us to help you with calculating the claim that needs to be filed  with your insurance company. Call Trent Watrous at 312-9022 if you have any questions.