My daycare is closed due to Covid-19. They are still charging me under the contract despite not providing any service (and require 30 days notice to terminate). Would these payments (or the loss of paid for services) due to Covid-19 be deductable on 2020 as a disaster/casualty loss since it arises from a declared disaster? If so, would it be the payments or the loss of service that would be the casualty, because I'm paying a slightly reduced rate while they are closed so the value of the lost services is higher than the cash outlay.
My wife and I are also using paid leave to provide child care. Would the involuntary conversion of the paid leave for this purpose, rather than for a holiday or other intended purpose, impact the analysis? Would that be a casualty gain offset by the loss for example?
