The dollar value of property losses due to fires, floods, tornadoes, earthquakes, lightning, freezes, etc. can be substantial. Federal income tax regulations often provide relief by allowing deductions for losses of business-use property.
Disaster Related Tax Information
Many farmers are or have experienced severe drought conditions and/or flooding, and are in areas that have been declared a disaster area by the Secretary of Agriculture. Producers may be making decisions about selling their livestock because of these conditions. There are special tax provisions for sales of livestock more than normal because of weather conditions. Personal and business losses may be deductible due to disasters (i.e. fire, flood, hurricane, tornado).