Business & farm

If your business property was destroyed due to a casualty, you can report the loss in the Casualty Loss section of TurboTax.

A casualty loss can result from the damage, destruction, or loss of your property from any sudden, unexpected, or unusual event such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption. A casualty doesn't include normal wear and tear or progressive deterioration.

The requirements for each type of loss vary. For more information, see Publication 547 or refer to the Instructions for Form 4684.

To report the loss of business property due to a casualty in TurboTax Online:

1. Go to Deductions & Credits
2. Select Disasters, theft, and other property loss or damage
3. Click to add a casualty or theft
4. Fill in the Description of the event (e.g., "fire", "theft")
5. Fill in the date
6. Select Income-Producing Property as the Property Type
7. Choose "no" when asked if it was used in a passive activity (assuming it's used in your Schedule C business)
8. Enter the description of the property, date acquired, cost basis (for business property, your adjusted basis after depreciation), and any insurance reimbursement
9. Enter fair market value before and after the casualty (if lost due to theft, value after is 0)
10. Select "I used this property in my business"
11. Select Done

When you preview your return, look for the loss to appear on Form 4797.

See here for more information from the IRS on this topic.