Final answer:
Personal and business casualty losses in a presidentially declared disaster area are generally deductible from AGI as itemized deductions.
Step-by-step explanation:
Business
In a presidentially declared disaster area, both personal casualty losses and business casualty losses are generally deductible from AGI as itemized deductions.
Personal casualty losses include damages to personal property due to events like fires, storms, or theft.
Business casualty losses refer to damages to business property or other business-related losses.
Itemized deductions are reported on Schedule A of the IRS Form 1040.
However, there are certain limitations and requirements for claiming casualty losses, such as the need for the property to be located in a federally declared disaster area and the need to reduce the loss by any insurance reimbursement received.
It is advised to consult with a tax professional or refer to IRS guidelines for more specific information regarding your situation.