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Returning Member
posted Mar 23, 2021 5:07:43 PM

Loss of business assets and subsequent replacement

I lost my entire wood shop in 2019 in a fire. Nothing was insured. I have been replacing these tools and equipment during 2020. How do handle these purchases for tax purposes since I have no income for 2020?

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1 Replies
Expert Alumni
Mar 23, 2021 5:31:22 PM

You can enter the assets on Schedule C with no income.  Be sure to keep all the records (receipts etc.) in case of audit.  

 

See also Topic No. 515 Casualty, Disaster, and Theft Losses.