Business Asset Casualty or Loss Worksheet

This asset loss worksheet provides a simple, auditable way to document casualty and theft losses affecting business or income-producing property over a defined time period. It captures the asset description, date of loss, cost, reason for loss, and totals under a manager's supervision. Companies use this record to establish proof of loss, organize insurance or other reimbursements, and prepare for reporting requirements that often follow casualty or theft events.

When a sudden, unexpected, and unusual event such as a flood, hurricane, tornado, fire, vandalism, burglary, or embezzlement occurs, the entry should note the cause, any insurance claim filed, and reimbursement received after deducting loss. For U.S. taxpayers, this documentation supports key tax concepts such as adjusted basis, fair market value, decrease in fair market value, appraisal, cost of repairs, salvage value, and basis adjustment. These data often feed into Form 4684 (reporting requirements on Form 4684), including Section A for personal-use property and Section B for business property, and may affect whether you report on Schedule D or on Form 4797. Personal casualty gains and casualty deduction issues can intersect with itemized deduction rules on Schedule A itemized deductions (Schedule A Form 1040), subject to deduction limits, the $100 rule, and 10% rule, and aggressive limitations $100 and 10% as applicable.

For personal casualty loss claims in tax year 2018 through 2025, deductions generally apply only in a federally-declared disaster area with a FEMA disaster declaration. The worksheet helps track disaster year facts, FEMA disaster numbers, disaster relief details, and whether a federal qualified disaster loss or a qualified disaster loss applies. If an insurance reimbursement is pending, the file supports a reasonable prospect of recovery analysis and a timely claim for reimbursement.

References often include Publication 547, Publication 584 workbooks for casualties and thefts, and Publication 584-B workbooks. Specialized situations: corrosive drywall losses, corrosive drywall, ponzi-type investment scheme (Section C Ponzi scheme), or mixed-use property, such as a home office, benefit from clear entries distinguishing business vs personal property and personal-use property. Businesses also use the record to track loss of inventory, casualty gain, postponement of gain, replacement property that is similar or related in use or in service, replacement cost, replacement period, and any replacement period extension. Some cases involve disaster assistance, loan proceeds, or amended return filings (Form 1040-X amended return), instructions for Schedule A, instructions for Form 4684, Form 1040, Form 1040-NR, or state forms like New York Form IT-196, Itemized Deductions Worksheet, IT-196 line 20.

Use cases include documenting a warehouse fire, burglary of tools, a flood-damaged fleet vehicle, or a casualty to investment property. The worksheet also supports unreimbursed losses, employee business expenses, personal casualty loss in a federal disaster area, and claiming the loss when to deduct subject to nondeductible losses and casualty definitions.

Proposal Kit helps teams assemble documents like this, add automated line-item quoting to related cost narratives, and use its AI Writer to build supporting summaries. Its extensive template library and ease of use streamline preparing consistent records alongside proposals, policies, and recovery plans.

Beyond basic recordkeeping, this casualty and theft worksheet helps decision-makers align financial, insurance, and tax workflows after a sudden, unexpected, and unusual event. For a trade or business, each entry connects the basis of property, decline in market value or decline in FMV, cost of repairs, and salvage and reimbursement to determine deductible losses or a potential capital gain if insurance coverage or salvage exceeds basis. If a theft loss or casualty to business property occurs, the data may support whether to report on Form 4797, while casualty to personal-use property typically routes through Form 4684 Section A, a Schedule A worksheet, and the report on Form 1040.

Business events usually flow through Form 4684 Section B. Clear notes on an insurance claim for reimbursement and any claim reimbursement later received help apply casualty loss rules, including when to claim a deduction and whether you can deduct in the preceding year in certain disaster situations.

The file also supports valuation choices, including safe harbor methods and appraisals to quantify the decline in value due to casualty. It distinguishes nondeductible progressive deterioration from qualifying events and flags home office mixed-use or similar or related in-service or use replacement decisions, including the basis of replacement property. When your loss deduction exceeds your income, the summary aids the evaluation of a net operating loss effect on adjusted gross income. For specialized issues, such as workbook personal-use property references, itemized miscellaneous deductions histories, ponzi investment schemes treated as theft deduction claims, or coordinating salvage and reimbursement-organized entries, reduce rework and speed reviews.

Proposal Kit can streamline the creation of these project management documents by assembling the casualty and theft worksheet alongside incident summaries, inventory lists, and replacement analyses. Teams can use automated line-item quoting to align cost narratives, and the AI Writer to build supporting documents that reference the report on Form 4797, Form 4684 Section A and Section B, and related schedules. Its template library and ease of use help operations, finance, and risk teams move from disruption to documentation, then to recovery planning and compliance. Use cases include factory flood losses, theft of field gear, casualty to business property in a warehouse, and mixed-use home office equipment affected by a disaster.

Expanding on practical governance, the worksheet also anchors an internal control routine: assign owners for each loss entry, attach photos and vendor estimates, record salvage auction receipts, and link to asset IDs so finance can reconcile disposals and repairs. Including timelines for filing an insurance claim for reimbursement, documenting adjuster communications, and noting approval dates reduces cycle time and audit risk. Differentiating repair costs that restore condition from capital improvements helps maintain the basis of property accurately and supports later measurement if replacement assets are acquired that are similar or related in service or use.

Capturing how management determined the decline in value due to casualty, whether by appraisal, cost-of-repair analysis, or other safe harbor methods, keeps the file decision-ready for reviewers. These steps streamline downstream calculations tied to a potential casualty loss deduction and clarify whether amounts will be reported on Form 4797 or flow through personal schedules, depending on the property type.

Proposal Kit can further systematize this process by assembling the casualty and theft worksheet with embedded instructions, sign-offs, and companion checklists, making it easier for cross-functional teams to claim reimbursement, track salvage and reimbursement, and produce consistent incident summaries that support both operational recovery and compliance filings.

How do you write a Business Asset Casualty or Loss Worksheet document?

BUSINESS ASSET CASUALTY / LOSS WORKSHEET

Company Name

Address Address

City, State Postal Code

Phone: Phone Number DATE: Current Date

Time Period: Start Date - End Date.

Manager: Supervisor

ASSET DESCRIPTION* DATE of LOSS COST of ASSET REASON for LOSS TOTAL.