What Business Owners Need to Know About Disaster-Related Tax Relief

When a hurricane hits Florida, the impact on businesses can be overwhelming. Beyond storm damage, there’s another layer: taxes. The IRS and Florida state tax authorities offer relief in certain circumstances. This guide will walk you through what relief exists, important deadlines, and how casualty loss rules work in 2025.

What Hurricane Tax Relief Means for Businesses

Tax relief for disasters includes several tools that help businesses stay afloat:

• Deadline extensions for filing returns and paying taxes
  
  
• Penalty abatement (reducing or removing penalties for late filings or payments)
  
  
• Casualty loss deductions, when property or assets are damaged or destroyed
  
  

Knowing what you qualify for—and acting quickly—can make a real difference.

What Deadlines & Extensions Are in Place in Florida (2025)

Florida businesses impacted by recent hurricanes—particularly Helene and Milton—have new timelines for many tax obligations.

Here’s a breakdown of what the IRS has done:

Federal individual and business tax returns

• Original Due Date: March–April 2025
  
  
• Extended Deadline: May 1, 2025
  
  

2023 returns with valid extensions

• Original Due Date: Varied (often October 15, 2024)
  
  
• Extended Deadline: May 1, 2025 (for those covered by Florida relief)
  
  

Quarterly estimated tax payments

• Original Due Dates: Sept 16, 2024; Jan 15, 2025; April 15, 2025
  
  
• Extended Deadline: May 1, 2025 (for affected taxpayers)
  
  

Payroll and excise tax returns

• Original Due Dates: Oct 31, 2024; Jan 31, 2025; April 30, 2025
  
  
• Extended Deadline: May 1, 2025 (for covered areas in Florida)

Some additional points:

• Extensions are generally automatic for those in FEMA- or IRS-recognized disaster areas. You usually don’t need to apply.
  
  
• If you get a penalty notice for something due in the postponed period, you may request abatement by showing you were in the covered area.
  
  

Casualty Loss Rules: What You Need to Know

If your business suffered property damage or other losses because of the hurricane, you might be able to deduct some of that loss. Here’s what to understand about casualty loss rules in 2025, especially in light of recent laws.

What Counts as a “Casualty Loss”

A casualty loss is generally damage, destruction, or loss of property from a sudden, unexpected event. Hurricanes qualify, especially when the location is in a federally declared disaster area.

Casualty losses may cover:

• Damage to structures (buildings, roofs, etc.)
  
  
• Loss or damage of equipment, inventory, furniture
  
  
• Costs of clean-up, debris removal, or necessary disposal
  
  

You can’t claim losses that are fully covered by insurance or other reimbursements. Also, losses must be documented well. Receipts, photos, repair estimates—all important.

Recent Changes: Federal Disaster Tax Relief Act of 2023

There was a meaningful change recently under the Federal Disaster Tax Relief Act of 2023. It affects how casualty losses for personal property (and in many cases, business property) are handled.

Some of the key updates:

• You may be able to deduct personal casualty losses even if you don’t itemize deductions, in certain disaster situations.
  
  
• The standard threshold that previously required losses to exceed $100 per casualty and be more than 10% of adjusted gross income (AGI) may be modified. For qualifying disasters under that Act, the loss floor may instead be $500 per casualty.
  
  
• The period during which a disaster qualifies under the Act is for disasters declared between December 28, 2019, and December 12, 2024, that ended by January 11, 2025.
  
  

When You Can Claim the Loss

You usually have two options for which tax year to claim a casualty loss:

• In the year the disaster occurred
  
  
• Or prior year, for some situations, if that gives a better tax benefit
  
  

For example, if a hurricane damaged business property in 2024, you might choose to include the loss on your 2024 return or your 2023 return (if eligible and if that option is still open). This can be significant, depending on income, deductions, etc.

Things to Watch Out For & Best Practices

Even with relief, there are pitfalls. To protect yourself and your business, do the following:

• Check if your area is officially recognized as a disaster area. Relief applies only if it’s federal/federal-state declared.
  
  
• Keep careful records: pictures, invoices, insurance claims, how the damage happened, and repair costs. These serve as evidence.
  
  
• Track insurance or other reimbursements: The deductible loss is reduced by what insurance pays or other reimbursements you receive.
  
  
• Mind the thresholds: Even under the newer rules, some thresholds or floors apply. Make sure you compute correctly.
  
  
• Decide wisely on which year to claim: Sometimes putting the loss on a prior year yields better benefits, depending on your income in that year. But doing so may require amended returns.
  
  
• Stay updated: Tax laws do change, especially after major disasters. What’s true in early 2025 might be revised.
  
  

Summary: What This Means for Florida Businesses Now

If you run a business in Florida and were hit by recent hurricanes, relief is available. You likely have extra time (in many cases until May 1, 2025) to file returns, estimated taxes, and payroll/ excise returns. You may also deduct disaster-related losses through casualty loss rules that have been made more flexible under recent legislation.

But relief isn’t automatic in every case. To use it fully, you’ll want to confirm your eligibility, maintain good documentation, and perhaps get help from a tax professional.

If you’re navigating hurricane damage, wondering whether you qualify for these relief measures, or need help with deductions or extended deadline filings, Sela Tax & Accounting LLC can help you sort it out. Reach out via our website, selatax.com, and let us work together to get your business on firmer footing.