Floods And Small Businesses: Tax Details And Relief Programs You Should Know About

Flooding and water damage are a small business owner's worst nightmare. Whether from a natural disaster or an incident such as a broken water main, even minor flooding can cost small business owners tens of thousands of dollars in water damage cleanup and lost inventory and supplies. In fact, after a flood, around 40% of small businesses never reopen their doors. As a small business owner, the best thing you can do to protect yourself from the rising waters is to buy flood insurance which will protect your buildings and any supplies, machinery and merchandise therein.

Luckily, whether you are covered by insurance or not, there are relief programs in place that can help ease the burden of flood and water damage. Small business owners and individuals may qualify for tax deductions and credits, low-interest loans and changed tax filing deadlines in the aftermath of a disaster.

Tax Deductions and Credits

One of the most important tax forms for business owners after flooding is Form 4684, Casualties and TheftsThis form will allow you to deduct the cost of your lost supplies and inventory not reimbursed by insurance.

If your region was declared a federal or state emergency area you may be eligible for further deductions or credits on your taxes. The best agency to contact for further information about disaster relief programs available to you in this case is the Federal Emergency Management Agency (FEMA).  

Disaster Relief Loans

The Small Business Administration (SBA) provides low-interest loans to business owners who have been the victims of a disaster in order to help them get back on their feet. The USDA provides loans for agricultural enterprises after a disaster.

Extended Tax Filing Deadlines

If you've been the victim of a disaster, you may be eligible for an extended filing deadline on your taxes. This helps small business owners get their records in order and gives them a little more time before they have to pay any taxes they may owe.

Amended Tax Returns

After a disaster, you may be able to file an amended tax return for the previous tax year that includes your disaster-related losses. This will help you get any refunds you are entitled to without waiting for the next tax season. That money in your pocket can help you rebuild faster.

If you're cleaning up in the aftermath of a flood, make sure that you have explored every avenue with the help of companies like Property Doctors for getting the funds to help you get back on your feet.