3 things you need to know if you’re a business owner affected by the Louisiana floods
- You need to know what insurance policies you have in place.
- “Property insurance covers everything related to the loss and damage of company property due to a wide-variety of events such as fire, smoke, wind and hail storms, civil disobedience and vandalism. The definition of “property” is broad, and includes lost income, business interruption, buildings, computers, company papers and money.” https://www.sba.gov/managing-business/running-business/insurance/types-business-insurance
- There are two basic forms of property insurance, all-risk policies and peril-specific policies. All-risk policies cover a large amount of incidents and perils except those that are noted in the policy. Peril-specific policies cover all of the losses from only the perils that are listed in the policy. Some examples of peril-specific policies are; flood, fire, and crime.
- Are you in the federal disaster relief zone?
- “Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.” https://www.irs.gov/uac/tax-relief-for-victims-of-severe-storms-flooding-in-louisiana
- What questions you should ask your CPA.
- How do I report losses of inventory, fixed assets, and real estate?
- How do I recreate my lost records and receipts?
- Do I qualify for any state or federal tax credits in regards to the disaster?
- How do I report proceeds from the insurance company?
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