Federally declared Disaster losses are reported on form 4684 for both personal and business property.
from IRS PUB 547
Disaster year. The disaster year is the tax year in which
you sustained the loss attributable to a federally declared
disaster. Generally, a disaster loss is sustained in the year
the disaster occurred. However, a disaster loss may also
be sustained in a year after the disaster occurred. For ex
ample, if a claim for reimbursement exists for which there
is a reasonable prospect of recovery, no part of the loss
for which reimbursement may be received is sustained until
it can be ascertained with reasonable certainty whether
you will be reimbursed.
When to deduct the loss. You must generally deduct a
casualty loss in the disaster year. However, if you have a
casualty loss from a federally declared disaster that occur
red in an area warranting public or individual assistance
(or both), you can elect to deduct that loss on your return
or amended return for the tax year immediately preceding
the disaster year. If you make this election, the loss is trea
ted as having occurred in the preceding year. A list of
areas warranting public or individual assistance (or both)
is available at the FEMA website at
FEMA.gov/Disasters.
You must make the election to take your casualty loss
for the disaster in the preceding year on or before the date
that is 6 months after the regular due date for filing your
original return (without extensions) for the disaster year. If
you are a calendar year taxpayer, you have until October
15, 2024, to amend your 2022 tax return to claim a casu
note the words
no part of the loss
for which reimbursement may be received is sustained until
it can be ascertained with reasonable certainty whether
you will be reimbursed. That's the year for the deduction.
you may want to consult a tax pro to get guidance to when this occurred because that's the tax year to report it.
