Retail business loss due to fire

[Ronnieo]

I suffered some inventory loss due to smoke damage.  I was subsequently partially reimbursed by insurance company.  

Where do I enter the loss?

Where do I enter the reimbursement?

[Mike9241 · Accepted solution]

do you deduct the cost of the inventory in the previous or current year (ie you use the cash basis and do not value the year-end inventory) then you are expensing the cost including any lost in the fire.  you can;t deduct your cost twice. so all you need do is either reduce purchase by the insyrance amount or report it as other income.

if you account for inventory (value year-end inventory for tax purposes), the destroyed inventory is will be expensed so you have taken a deduction for its cost. then all you have to do is enter the insurance reimbursement just like above. 

[Jschaefers1]

I am totally confused by the response to this question.  Good English is not being used.  I lost two !4,000 square foot buildings in a fire on August 29, 2022.  Had no insurance.  You have not informed me as to where I claim this huge loss.  This was my Pickle Jar Antiques and More buildings with all the beautiful and high end antiques.

Have already told your program that I needed to report a loss.  It did not lead me to the section to report this loss.  And your HELP section is the worst anyone who speaks English could ever understand.  I need real help!

[AliciaP1 · Accepted solution]

It depends on how you report your business income.  If you report on a Schedule C you can enter your casualty loss by following these steps in TurboTax Online:

1. Within your tax return use the magnifying glass icon to search for Schedule C
2. Click the Jump to link
3. Click Edit or Review for the line of work the asset is under
4. Scroll to and click Edit for Assets
5. Click Yes on the Do you want to go directly to your asset summary? screen
6. Click Edit for the asset you need to change
7. Continue through the questions until you get to the Tell Us More About This Asset / Large Purchase screen
8. Check the This item was sold... line and Continue
9. On the Special Handling Required screen click Yes (this reports that the asset was destroyed from a casualty)
10. The allowable deduction is reported as a result

@Jschaefers1