If business casualty losses exceed business casualty gains, the gains are ordinary income and the losses are deductible for adjusted gross income.

Question

Quizplus · Accepted Answer

Business casualty losses that exceed business casualty gains are deductible from adjusted gross income, while the gains are treated as ordinary income. This allows businesses to offset their income by the net loss amount, providing tax relief for losses due to events like theft or natural disasters.

If Business Casualty Losses Exceed Business Casualty Gains, the Gains