Q: After my father passed away, investment property he owned was destroyed by fire. The insurance reimbursement didn't cover the actual loss. Can his estate deduct the difference? E.R., Fairfield, Calif.
A: Yes. But the rules for nonbusiness casualty and theft losses also apply to estates and trusts. That means the estate can only deduct the loss amount that exceeds 10 percent of the estate's adjusted gross income (AGI). The estate's administration expenses may be deducted in computing its AGI. For more details on this topic, obtain a copy of IRS Publication 547, Casualties, Disasters, and Thefts, at http://www.irs.gov/pub/irs-pdf/p547.pdf or by calling (800) 829-3676.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/22729/estates-can-deduct-casualty-losses "