From hurricanes and wildfires to COVID-19 and vandalism, threats to personal and business property abound. Unfortunately, recent changes to the federal tax rules for deducting casualty losses have caused some confusion. This article clarifies the rules for deducting losses incurred in 2019 and 2020. Some individual taxpayers may be disappointed to discover that their tax relief is severely limited under current law. But there's welcome relief for businesses that incur losses.
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