To amend the Internal Revenue Code of 1986 with respect to the deductibility of losses attributable to disasters for which assistance under the disaster loan program of the Small Business Act is available.

Amends the Internal Revenue Code to allow a taxpayer to elect to take a deduction for the preceding year for any loss attributable to a disaster occurring in an area subsequently determined by the Administrator of the Small Business Administration to warrant assistance under the disaster loan program of the Small Business Act.