While Wisconsin hasn’t had the significant losses due to natural disasters as other states, there are still farms that have occurred losses this year and potentially more to come.
An article “Disaster Losses and Related Tax Rules” was shared on the Extension Disaster Education Network (EDEN) last week. Here is a link to the article: http://ruraltax.org/files-ou/Disaster_Losses_and_Related_Tax_Rules.pdf The article is by J. C. Hobbs, Department of Agricultural Economics at Oklahoma State Extension and part of the Rural Tax Education http://ruraltax.org resources which were developed by Extension Specialists. Phil Harris, retired UWEX specialist and UW Madison Department of Agricultural and Applied Economics, contributed to the Rural Tax Education Resources.
On page 8 there’s a list of IRS publications related to Disaster Losses.
September is National Preparedness Month and this week’s focus in on making plans. In reviewing the list of what may be needed to show a loss, working on plans to have information prepared and protected is a good action as part of business continuity. When you consider the fact 40% of the small businesses do not reopen after a disaster loss, any loss can be hard on a farm and family financial situation. Documentation of loss is extremely important and documentation is valuable for many business purposes.
If you have other tax or farm financial management question, check with the UW Center for Dairy Profitability https://cdp.wisc.edu/.
If you have additional question on disaster preparedness or resources, feel free to contact me.
Cheryl A. Skjolaas
Agricultural Safety Specialist
UW Madison/Extension Center for Agricultural Safety and Health
460 Henry Mall, Madison WI 53706