ABC, Inc. of Jasper, Georgia suﬀered a casualty loss of $150,000 in March 2012. ftis loss was caused by heavy rains that completely ﬂooded their factory. As a result of these rains, the President declared North Georgia (including Jasper) a disaster area on March 23, 2012. In what year can ABC, Inc. elect to deduct the casualty loss?

Question

Quizplus · Accepted Answer

ABC can take the loss in 2012 or, by making an election, it may take the loss in 2011 since the casualty occurred in an area designated as a disaster area by the President.

ABC, Inc of Jasper, Georgia Suﬀered a Casualty Loss of $150,000