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A tax deduction for raising the roof?

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in Small Business Tax,Small Business Tax Deduction Strategies

Q. We repaired our damaged roof, but the contractor’s work was shoddy. Is this deductible as a casualty loss? C.P.D., Port St. Lucie, Fla.

A. It depends. You may qualify for an itemized casualty loss deduction if you meet the usual requirements (e.g., the damage was caused by a sudden, unexpected and unusual event like a hurricane). But casualty loss deductions on your personal return are limited to the excess above 10% of your adjusted gross income after subtracting $100 per casualty event.

In many cases, no deduction is allowed due to the AGI limit.

Tip: To figure the deductible amount, you must reduce the damage cost by any insurance proceeds you receive.

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