First, what kind of business? Single member LLC? sole proprietorship? multi-member LLC? Partnership? S-Corp? C-Corp?
This year, he rented a boat and unfortunately caused about $10,000 worth of damage when he hit submerged rocks.
Was this covered by any type of business insurance you two pay for? If so, was it covered in full? If not covered in full, what percentage was covered or what was your business "out of your pocket" deductible that you had to pay?
If it was not covered by insurance, did you pay the entire amount of the damages in 2019?
I need these details to determine and inform you of the best way to deal with this on the tax return.
