Are lost wages for time worked due to an office shut down deductible as a causality loss?

According to the IRS, a casualty loss is the damage, destruction or loss of property resulting from an identifiable event that is sudden, unexpected or unusual.



Lost wages don't qualify as a casualty loss. Instead, when you have lost wages due to an office shut down, you save taxes since those wages won't be included in your taxable earnings for the year.



Let's say that you earn $1,000 per week, and are out of work for 8 weeks due to an office shut down. Instead of claiming $52,000 as taxable wages and $8,000 as a casualty loss, you'll just claim $44,000 as taxable wages for the year.

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Are lost wages for time worked due to an office shut down deductible as a causality loss?

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