The so-called “disaster relief” provision, which has existed for decades, allows individuals and family offices to take certain COVID-19-related business and investment losses incurred in 2020 and accelerate them into your 2019 tax returns. This may include losses due to the closing of a store or business, the sale or exchange of certain property, or securities becoming impaired or worthless.
This issue of Family Office Insights examines:
- How the disaster relief provision works
- How you may benefit from it
- Whether you qualify to claim the relief
- When you need to make the election on your tax return
- Potential obstacles to claiming the relief