Wis. Admin. Code § Tax 2.98 — Disaster area losses

Tax 2.98(1) (1)

Tax 2.98(1)(a) (a) Hurricanes, fires, storms, floods, and other similar casualties may cause persons to suffer losses from damage to property used in a trade or business or for income-producing purposes for which insurance coverage is nominal or nonexistent. Losses sustained from casualties of this kind may be deductible on a federal and a Wisconsin income tax return.

Tax 2.98(1)(b) (b) If a taxpayer sustains a casualty loss from a disaster in an area subsequently determined by the president of the United States to warrant federal assistance, section 165 (i) of the Internal Revenue Code gives taxpayers the election to deduct the loss on the return for the current tax year or on the return for the immediately preceding tax year.

Tax 2.98(2) (2)

Tax 2.98(2)(a) (a) The Wisconsin income tax treatment is determined under the federal Internal Revenue Code in effect under s. 71.22 (4) , Stats., for corporations and s. 71.01 (6) , Stats., for individuals.

Tax 2.98(2)(b) (b) If a corporation, designated agent of a combined group, or an individual desires to make the election after having filed a Wisconsin income tax return for the preceding taxable year, the casualty loss may be claimed by filing an amended Wisconsin return for that year.