CASUALTY LOSSES – DAMAGES TO FOOD SUPPLIES (SPOILAGE) DUE TO LOSS OF ELECTRICITY – OCTOBER WINTER STORM/TORNADO DAMAGE 2011
I have been getting a number of questions asking about food spoilage and whether these costs are eligible for a casualty loss deduction. The simple answer is “Maybe”.
The replacement cost of the food can be deductible if not reimbursed by insurance.
Costs would be deductible once they a)exceed insurance proceeds, b) exceed $100 per event and c) exceed 10% of AGI ( adjusted gross income) for individual taxpayers.
Thanks Gary for the additional information.