topic FLOOD DAMAGE ON HOUSE + HOME BUSINESS in Deductions & credits

FLOOD DAMAGE ON HOUSE + HOME BUSINESS

davecampit2020 — Mon, 30 Mar 2020 05:00:01 GMT

How exactly do I handle flood damage/restoration on my 2019 taxes? A water pipe broke and gushed in the middle of the night, causing an estimated $111,000.00 in damage to my home, with every room affected including my two office rooms, waiting room, and storage room business area that constitute 40% of my home. After the $1,000 deductible, my homeowners insurance still only covered $65,000.00 of the damage, and the rest I paid myself.

My business also lost $6,029.48 in damaged property in the flood, of which insurance covered $4,910.16.

I'm not sure how to handle any of this on my taxes.

Re: FLOOD DAMAGE ON HOUSE + HOME BUSINESS

ColeenD3 — Mon, 30 Mar 2020 14:59:50 GMT

Unfortunately, personal casualty and theft has been repealed with TCJA, unless it is in a Presidentially Declared Disaster Area. Your business loss can be entered on Form 4684.

Use a separate Form 4684, Section B, Part I, for each casualty or theft involving property used in a trade or business or for income-producing purposes. Use one Section B, Part II, to combine all Sections B, Part I.

How to enter it into TurboTax: While inside the software and working on your return, type casualty loss in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to casualty loss. Select that to get to the general area.

@davecampit2020

Re: FLOOD DAMAGE ON HOUSE + HOME BUSINESS

davecampit2020 — Wed, 01 Apr 2020 17:35:11 GMT

Thank you.