Natural disasters are in the forefront of the news again. It’s hard to watch these tragedies unfold on such a regular basis over the last few years. We all mourn over the loss of life, injuries and property damage.
We are especially concerned when a natural disaster hits a family child care provider because it affects more than just one family.
Although it may be small comfort in the immediate aftermath of a tornado, there are some tax deductions that family child care providers should be aware of when they file their tax return.
Furniture, appliances, equipment and household items that are used in your business and are destroyed by a natural disaster can be deducted as business expenses, under certain circumstances.
For details see my article “Deducting Losses from a Natural Disaster.”
I recommend that you conduct an extensive household inventory of all items in your home, business and personal and put a copy of the inventory in a safe deposit box. This can be a valuable tool when trying to asses what property was destroyed when making an insurance claim and deducting expenses.
See my article, “Conduct a Household Inventory to Save Money.”
Tom Copeland – www.tomcopelandblog.com
Image credit: me062.k12.sd.us
For more information on how to claim a casualty loss, see my book Family Child Care Tax Workbook and Organizer.