Stronger hurricanes, heavier and longer rains, raging wildfires. Natural disasters seem to be happening more often, but the loss of life is, of course, much more important than any other aspect of our home or business. While it currently seems that businesses and our economy have more than enough to deal with during COVID-19, natural disasters can wreak havoc on your business at any time, especially when they destroy vital paper tax records and documentation.
Although substantiating casualty-loss deductions after a disaster became tougher under 2017’s Tax Cuts and Jobs Act , reconstructing records after a disaster is important for many reasons. You’ll not only need detailed records to file your taxes, but also to file claims for insurance reimbursement. In some cases, you’ll also need them for proof of disaster-related losses, if you’re seeking recovery assistance through loans and grants.