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1040ez 2009 Tax Form

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1040ez 2009 Tax Form

1040ez 2009 tax form Publication 547 - Main Content Table of Contents CasualtyFamily pet. 1040ez 2009 tax form Progressive deterioration. 1040ez 2009 tax form Special Procedure for Damage From Corrosive Drywall Theft Loss on Deposits Proof of Loss Figuring a LossGain from reimbursement. 1040ez 2009 tax form Business or income-producing property. 1040ez 2009 tax form Loss of inventory. 1040ez 2009 tax form Leased property. 1040ez 2009 tax form Exception for personal-use real property. 1040ez 2009 tax form Decrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Deduction Limits2% Rule $100 Rule 10% Rule Figuring the Deduction Figuring a GainPostponement of Gain When To Report Gains and LossesLoss on deposits. 1040ez 2009 tax form Lessee's loss. 1040ez 2009 tax form Disaster Area LossesDisaster loss to inventory. 1040ez 2009 tax form Main home in disaster area. 1040ez 2009 tax form Unsafe home. 1040ez 2009 tax form Time limit for making choice. 1040ez 2009 tax form Revoking your choice. 1040ez 2009 tax form Figuring the loss deduction. 1040ez 2009 tax form How to report the loss on Form 1040X. 1040ez 2009 tax form Records. 1040ez 2009 tax form Need a copy of your tax return for the preceding year? Postponed Tax Deadlines Contacting the Federal Emergency Management Agency (FEMA) How To Report Gains and LossesProperty held 1 year or less. 1040ez 2009 tax form Property held more than 1 year. 1040ez 2009 tax form Depreciable property. 1040ez 2009 tax form Adjustments to Basis If Deductions Are More Than Income How To Get Tax HelpLow Income Taxpayer Clinics Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. 1040ez 2009 tax form A sudden event is one that is swift, not gradual or progressive. 1040ez 2009 tax form An unexpected event is one that is ordinarily unanticipated and unintended. 1040ez 2009 tax form An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. 1040ez 2009 tax form Generally, casualty losses are deductible during the taxable year that the loss occurred. 1040ez 2009 tax form See Table 3, later. 1040ez 2009 tax form Deductible losses. 1040ez 2009 tax form   Deductible casualty losses can result from a number of different causes, including the following. 1040ez 2009 tax form Car accidents (but see Nondeductible losses , next, for exceptions). 1040ez 2009 tax form Earthquakes. 1040ez 2009 tax form Fires (but see Nondeductible losses , next, for exceptions). 1040ez 2009 tax form Floods. 1040ez 2009 tax form Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses , later. 1040ez 2009 tax form Mine cave-ins. 1040ez 2009 tax form Shipwrecks. 1040ez 2009 tax form Sonic booms. 1040ez 2009 tax form Storms, including hurricanes and tornadoes. 1040ez 2009 tax form Terrorist attacks. 1040ez 2009 tax form Vandalism. 1040ez 2009 tax form Volcanic eruptions. 1040ez 2009 tax form Nondeductible losses. 1040ez 2009 tax form   A casualty loss is not deductible if the damage or destruction is caused by the following. 1040ez 2009 tax form Accidentally breaking articles such as glassware or china under normal conditions. 1040ez 2009 tax form A family pet (explained below). 1040ez 2009 tax form A fire if you willfully set it, or pay someone else to set it. 1040ez 2009 tax form A car accident if your willful negligence or willful act caused it. 1040ez 2009 tax form The same is true if the willful act or willful negligence of someone acting for you caused the accident. 1040ez 2009 tax form Progressive deterioration (explained below). 1040ez 2009 tax form However, see Special Procedure for Damage From Corrosive Drywall , later. 1040ez 2009 tax form Family pet. 1040ez 2009 tax form   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your antique oriental rug was damaged by your new puppy before it was housebroken. 1040ez 2009 tax form Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. 1040ez 2009 tax form Progressive deterioration. 1040ez 2009 tax form   Loss of property due to progressive deterioration is not deductible as a casualty loss. 1040ez 2009 tax form This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. 1040ez 2009 tax form The following are examples of damage due to progressive deterioration. 1040ez 2009 tax form The steady weakening of a building due to normal wind and weather conditions. 1040ez 2009 tax form The deterioration and damage to a water heater that bursts. 1040ez 2009 tax form However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. 1040ez 2009 tax form Most losses of property caused by droughts. 1040ez 2009 tax form To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. 1040ez 2009 tax form Termite or moth damage. 1040ez 2009 tax form The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. 1040ez 2009 tax form However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. 1040ez 2009 tax form Special Procedure for Damage From Corrosive Drywall Under a special procedure, you can deduct the amounts you paid to repair damage to your home and household appliances due to corrosive drywall. 1040ez 2009 tax form Under this procedure, you treat the amounts paid for repairs as a casualty loss in the year of payment. 1040ez 2009 tax form For example, amounts you paid for repairs in 2013 are deductible on your 2013 tax return and amounts you paid for repairs in 2012 are deductible on your 2012 tax return. 1040ez 2009 tax form Note. 1040ez 2009 tax form If you paid for any repairs before 2013 and you choose to follow this special procedure, you can amend your return for the earlier year by filing Form 1040X, Amended U. 1040ez 2009 tax form S. 1040ez 2009 tax form Individual Income Tax Return, and attaching a completed Form 4684 for the appropriate year. 1040ez 2009 tax form Form 4684 for the appropriate year can be found at IRS. 1040ez 2009 tax form gov. 1040ez 2009 tax form Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. 1040ez 2009 tax form Corrosive drywall. 1040ez 2009 tax form   For purposes of this special procedure, “corrosive drywall” means drywall that is identified as problem drywall under the two-step identification method published by the Consumer Product Safety Commission (CPSC) and the Department of Housing and Urban Development (HUD) in their interim guidance dated January 28, 2010, as revised by the CPSC and HUD. 1040ez 2009 tax form The revised identification guidance and remediation guidelines are available at www. 1040ez 2009 tax form cpsc. 1040ez 2009 tax form gov/Safety-Education/Safety-Education-Centers/Drywall. 1040ez 2009 tax form Special instructions for completing Form 4684. 1040ez 2009 tax form   If you choose to follow this special procedure, complete Form 4684, Section A, according to the instructions below. 1040ez 2009 tax form The IRS will not challenge your treatment of damage resulting from corrosive drywall as a casualty loss if you determine and report the loss as explained below. 1040ez 2009 tax form Top margin of Form 4684. 1040ez 2009 tax form   Enter “Revenue Procedure 2010-36”. 1040ez 2009 tax form Line 1. 1040ez 2009 tax form   Enter the information required by the line 1 instructions. 1040ez 2009 tax form Line 2. 1040ez 2009 tax form   Skip this line. 1040ez 2009 tax form Line 3. 1040ez 2009 tax form   Enter the amount of insurance or other reimbursements you received (including through litigation). 1040ez 2009 tax form If none, enter -0-. 1040ez 2009 tax form Lines 4–7. 1040ez 2009 tax form   Skip these lines. 1040ez 2009 tax form Line 8. 1040ez 2009 tax form   Enter the amount you paid to repair the damage to your home and household appliances due to corrosive drywall. 1040ez 2009 tax form Enter only the amounts you paid to restore your home to the condition existing immediately before the damage. 1040ez 2009 tax form Do not enter any amounts you paid for improvements or additions that increased the value of your home above its pre-loss value. 1040ez 2009 tax form If you replaced a household appliance instead of repairing it, enter the lesser of: The current cost to replace the original appliance, or The basis of the original appliance (generally its cost). 1040ez 2009 tax form Line 9. 1040ez 2009 tax form   If line 8 is more than line 3, do one of the following. 1040ez 2009 tax form If you have a pending claim for reimbursement (or you intend to pursue reimbursement), enter 75% of the difference between lines 3 and 8. 1040ez 2009 tax form If item (1) does not apply to you, enter the full amount of the difference between lines 3 and 8. 1040ez 2009 tax form If line 8 is less than or equal to line 3, you cannot claim a casualty loss deduction using this special procedure. 1040ez 2009 tax form    If you have a pending claim for reimbursement (or you intend to pursue reimbursement), you may have income or an additional deduction in a later tax year depending on the actual amount of reimbursement received. 1040ez 2009 tax form See Reimbursement Received After Deducting Loss, later. 1040ez 2009 tax form Lines 10–18. 1040ez 2009 tax form   Complete these lines according to the Instructions for Form 4684. 1040ez 2009 tax form Choosing not to follow this special procedure. 1040ez 2009 tax form   If you choose not to follow this special procedure, you are subject to all of the provisions that apply to the deductibility of casualty losses, and you must complete lines 1–9 according to the Instructions for Form 4684. 1040ez 2009 tax form This means, for example, that you must establish that the damage, destruction, or loss of property resulted from an identifiable event as defined earlier under Casualty . 1040ez 2009 tax form Furthermore, you must have proof that shows the following. 1040ez 2009 tax form The loss is properly deductible in the tax year you claimed it and not in some other year. 1040ez 2009 tax form See When To Report Gains and Losses , later. 1040ez 2009 tax form The amount of the claimed loss. 1040ez 2009 tax form See Proof of Loss , later. 1040ez 2009 tax form No claim for reimbursement of any portion of the loss exists for which there is a reasonable prospect of recovery. 1040ez 2009 tax form See When To Report Gains and Losses , later. 1040ez 2009 tax form Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. 1040ez 2009 tax form The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. 1040ez 2009 tax form You do not need to show a conviction for theft. 1040ez 2009 tax form Theft includes the taking of money or property by the following means. 1040ez 2009 tax form Blackmail. 1040ez 2009 tax form Burglary. 1040ez 2009 tax form Embezzlement. 1040ez 2009 tax form Extortion. 1040ez 2009 tax form Kidnapping for ransom. 1040ez 2009 tax form Larceny. 1040ez 2009 tax form Robbery. 1040ez 2009 tax form The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. 1040ez 2009 tax form Decline in market value of stock. 1040ez 2009 tax form   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. 1040ez 2009 tax form However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. 1040ez 2009 tax form You report a capital loss on Schedule D (Form 1040). 1040ez 2009 tax form For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. 1040ez 2009 tax form Mislaid or lost property. 1040ez 2009 tax form    The simple disappearance of money or property is not a theft. 1040ez 2009 tax form However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. 1040ez 2009 tax form Sudden, unexpected, and unusual events were defined earlier under Casualty . 1040ez 2009 tax form Example. 1040ez 2009 tax form A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. 1040ez 2009 tax form The diamond falls from the ring and is never found. 1040ez 2009 tax form The loss of the diamond is a casualty. 1040ez 2009 tax form Losses from Ponzi-type investment schemes. 1040ez 2009 tax form   The IRS has issued the following guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes: Revenue Ruling 2009-9, 2009-14 I. 1040ez 2009 tax form R. 1040ez 2009 tax form B. 1040ez 2009 tax form 735 (available at www. 1040ez 2009 tax form irs. 1040ez 2009 tax form gov/irb/2009-14_IRB/ar07. 1040ez 2009 tax form html). 1040ez 2009 tax form Revenue Procedure 2009-20, 2009-14 I. 1040ez 2009 tax form R. 1040ez 2009 tax form B. 1040ez 2009 tax form 749 (available at www. 1040ez 2009 tax form irs. 1040ez 2009 tax form gov/irb/2009-14_IRB/ar11. 1040ez 2009 tax form html). 1040ez 2009 tax form Revenue Procedure 2011-58, 2011-50 I. 1040ez 2009 tax form R. 1040ez 2009 tax form B. 1040ez 2009 tax form 847 (available at www. 1040ez 2009 tax form irs. 1040ez 2009 tax form gov/irb/2011-50_IRB/ar11. 1040ez 2009 tax form html). 1040ez 2009 tax form If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. 1040ez 2009 tax form Skip lines 19 to 27, but you must fill out Section B, lines 29 to 39, as appropriate. 1040ez 2009 tax form Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. 1040ez 2009 tax form You do not need to complete Appendix A. 1040ez 2009 tax form For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. 1040ez 2009 tax form   If you choose not to use the procedures in Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. 1040ez 2009 tax form Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. 1040ez 2009 tax form If you incurred this type of loss, you can choose one of the following ways to deduct the loss. 1040ez 2009 tax form As a casualty loss. 1040ez 2009 tax form As an ordinary loss. 1040ez 2009 tax form As a nonbusiness bad debt. 1040ez 2009 tax form Casualty loss or ordinary loss. 1040ez 2009 tax form   You can choose to deduct a loss on deposits as a casualty loss or as an ordinary loss for any year in which you can reasonably estimate how much of your deposits you have lost in an insolvent or bankrupt financial institution. 1040ez 2009 tax form The choice generally is made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. 1040ez 2009 tax form If you treat the loss as a casualty or ordinary loss, you cannot treat the same amount of the loss as a nonbusiness bad debt when it actually becomes worthless. 1040ez 2009 tax form However, you can take a nonbusiness bad debt deduction for any amount of loss that is more than the estimated amount you deducted as a casualty or ordinary loss. 1040ez 2009 tax form Once you make the choice, you cannot change it without permission from the Internal Revenue Service. 1040ez 2009 tax form   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. 1040ez 2009 tax form The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. 1040ez 2009 tax form Your loss is subject to the 2%-of-adjusted-gross-income limit. 1040ez 2009 tax form You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. 1040ez 2009 tax form Nonbusiness bad debt. 1040ez 2009 tax form   If you do not choose to deduct the loss as a casualty loss or as an ordinary loss, you must wait until the year the actual loss is determined and deduct the loss as a nonbusiness bad debt in that year. 1040ez 2009 tax form How to report. 1040ez 2009 tax form   The kind of deduction you choose for your loss on deposits determines how you report your loss. 1040ez 2009 tax form See Table 1. 1040ez 2009 tax form More information. 1040ez 2009 tax form   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684. 1040ez 2009 tax form Deducted loss recovered. 1040ez 2009 tax form   If you recover an amount you deducted as a loss in an earlier year, you may have to include the amount recovered in your income for the year of recovery. 1040ez 2009 tax form If any part of the original deduction did not reduce your tax in the earlier year, you do not have to include that part of the recovery in your income. 1040ez 2009 tax form For more information, see Recoveries in Publication 525. 1040ez 2009 tax form Proof of Loss To deduct a casualty or theft loss, you must be able to show that there was a casualty or theft. 1040ez 2009 tax form You also must be able to support the amount you take as a deduction. 1040ez 2009 tax form Casualty loss proof. 1040ez 2009 tax form   For a casualty loss, you should be able to show all of the following. 1040ez 2009 tax form The type of casualty (car accident, fire, storm, etc. 1040ez 2009 tax form ) and when it occurred. 1040ez 2009 tax form That the loss was a direct result of the casualty. 1040ez 2009 tax form That you were the owner of the property, or if you leased the property from someone else, that you were contractually liable to the owner for the damage. 1040ez 2009 tax form Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. 1040ez 2009 tax form Theft loss proof. 1040ez 2009 tax form   For a theft loss, you should be able to show all of the following. 1040ez 2009 tax form When you discovered that your property was missing. 1040ez 2009 tax form That your property was stolen. 1040ez 2009 tax form That you were the owner of the property. 1040ez 2009 tax form Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. 1040ez 2009 tax form    It is important that you have records that will prove your deduction. 1040ez 2009 tax form If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. 1040ez 2009 tax form Figuring a Loss To determine your deduction for a casualty or theft loss, you must first figure your loss. 1040ez 2009 tax form Table 1. 1040ez 2009 tax form Reporting Loss on Deposits IF you choose to report the loss as a(n). 1040ez 2009 tax form . 1040ez 2009 tax form . 1040ez 2009 tax form   THEN report it on. 1040ez 2009 tax form . 1040ez 2009 tax form . 1040ez 2009 tax form casualty loss   Form 4684 and Schedule A  (Form 1040). 1040ez 2009 tax form ordinary loss   Schedule A (Form 1040). 1040ez 2009 tax form nonbusiness bad debt   Form 8949 and Schedule D (Form 1040). 1040ez 2009 tax form Amount of loss. 1040ez 2009 tax form   Figure the amount of your loss using the following steps. 1040ez 2009 tax form Determine your adjusted basis in the property before the casualty or theft. 1040ez 2009 tax form Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft. 1040ez 2009 tax form From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. 1040ez 2009 tax form For personal-use property and property used in performing services as an employee, apply the deduction limits, discussed later, to determine the amount of your deductible loss. 1040ez 2009 tax form Gain from reimbursement. 1040ez 2009 tax form   If your reimbursement is more than your adjusted basis in the property, you have a gain. 1040ez 2009 tax form This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. 1040ez 2009 tax form If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. 1040ez 2009 tax form See Figuring a Gain , later. 1040ez 2009 tax form Business or income-producing property. 1040ez 2009 tax form   If you have business or income-producing property, such as rental property, and it is stolen or completely destroyed, the decrease in FMV is not considered. 1040ez 2009 tax form Your loss is figured as follows:   Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive   Loss of inventory. 1040ez 2009 tax form   There are two ways you can deduct a casualty or theft loss of inventory, including items you hold for sale to customers. 1040ez 2009 tax form   One way is to deduct the loss through the increase in the cost of goods sold by properly reporting your opening and closing inventories. 1040ez 2009 tax form Do not claim this loss again as a casualty or theft loss. 1040ez 2009 tax form If you take the loss through the increase in the cost of goods sold, include any insurance or other reimbursement you receive for the loss in gross income. 1040ez 2009 tax form   The other way is to deduct the loss separately. 1040ez 2009 tax form If you deduct it separately, eliminate the affected inventory items from the cost of goods sold by making a downward adjustment to opening inventory or purchases. 1040ez 2009 tax form Reduce the loss by the reimbursement you received. 1040ez 2009 tax form Do not include the reimbursement in gross income. 1040ez 2009 tax form If you do not receive the reimbursement by the end of the year, you may not claim a loss to the extent you have a reasonable prospect of recovery. 1040ez 2009 tax form Leased property. 1040ez 2009 tax form   If you are liable for casualty damage to property you lease, your loss is the amount you must pay to repair the property minus any insurance or other reimbursement you receive or expect to receive. 1040ez 2009 tax form Separate computations. 1040ez 2009 tax form   Generally, if a single casualty or theft involves more than one item of property, you must figure the loss on each item separately. 1040ez 2009 tax form Then combine the losses to determine the total loss from that casualty or theft. 1040ez 2009 tax form Exception for personal-use real property. 1040ez 2009 tax form   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. 1040ez 2009 tax form Figure the loss using the smaller of the following. 1040ez 2009 tax form The decrease in FMV of the entire property. 1040ez 2009 tax form The adjusted basis of the entire property. 1040ez 2009 tax form   See Real property under Figuring the Deduction, later. 1040ez 2009 tax form Decrease in Fair Market Value Fair market value (FMV) is the price for which you could sell your property to a willing buyer when neither of you has to sell or buy and both of you know all the relevant facts. 1040ez 2009 tax form The decrease in FMV used to figure the amount of a casualty or theft loss is the difference between the property's fair market value immediately before and immediately after the casualty or theft. 1040ez 2009 tax form FMV of stolen property. 1040ez 2009 tax form   The FMV of property immediately after a theft is considered to be zero because you no longer have the property. 1040ez 2009 tax form Example. 1040ez 2009 tax form Several years ago, you purchased silver dollars at face value for $150. 1040ez 2009 tax form This is your adjusted basis in the property. 1040ez 2009 tax form Your silver dollars were stolen this year. 1040ez 2009 tax form The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. 1040ez 2009 tax form Your theft loss is $150. 1040ez 2009 tax form Recovered stolen property. 1040ez 2009 tax form   Recovered stolen property is your property that was stolen and later returned to you. 1040ez 2009 tax form If you recovered property after you had already taken a theft loss deduction, you must refigure your loss using the smaller of the property's adjusted basis (explained later) or the decrease in FMV from the time just before it was stolen until the time it was recovered. 1040ez 2009 tax form Use this amount to refigure your total loss for the year in which the loss was deducted. 1040ez 2009 tax form   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. 1040ez 2009 tax form But report the difference only up to the amount of the loss that reduced your tax. 1040ez 2009 tax form For more information on the amount to report, see Recoveries in Publication 525. 1040ez 2009 tax form Figuring Decrease in FMV — Items To Consider To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. 1040ez 2009 tax form However, other measures also can be used to establish certain decreases. 1040ez 2009 tax form See Appraisal and Cost of cleaning up or making repairs , next. 1040ez 2009 tax form Appraisal. 1040ez 2009 tax form   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterwards should be made by a competent appraiser. 1040ez 2009 tax form The appraiser must recognize the effects of any general market decline that may occur along with the casualty. 1040ez 2009 tax form This information is needed to limit any deduction to the actual loss resulting from damage to the property. 1040ez 2009 tax form   Several factors are important in evaluating the accuracy of an appraisal, including the following. 1040ez 2009 tax form The appraiser's familiarity with your property before and after the casualty or theft. 1040ez 2009 tax form The appraiser's knowledge of sales of comparable property in the area. 1040ez 2009 tax form The appraiser's knowledge of conditions in the area of the casualty. 1040ez 2009 tax form The appraiser's method of appraisal. 1040ez 2009 tax form You may be able to use an appraisal that you used to get a federal loan (or a federal loan guarantee) as the result of a federally declared disaster to establish the amount of your disaster loss. 1040ez 2009 tax form For more information on disasters, see Disaster Area Losses, later. 1040ez 2009 tax form Cost of cleaning up or making repairs. 1040ez 2009 tax form   The cost of repairing damaged property is not part of a casualty loss. 1040ez 2009 tax form Neither is the cost of cleaning up after a casualty. 1040ez 2009 tax form But you can use the cost of cleaning up or of making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. 1040ez 2009 tax form The repairs are actually made. 1040ez 2009 tax form The repairs are necessary to bring the property back to its condition before the casualty. 1040ez 2009 tax form The amount spent for repairs is not excessive. 1040ez 2009 tax form The repairs take care of the damage only. 1040ez 2009 tax form The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. 1040ez 2009 tax form Landscaping. 1040ez 2009 tax form   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. 1040ez 2009 tax form You may be able to measure your loss by what you spend on the following. 1040ez 2009 tax form Removing destroyed or damaged trees and shrubs, minus any salvage you receive. 1040ez 2009 tax form Pruning and other measures taken to preserve damaged trees and shrubs. 1040ez 2009 tax form Replanting necessary to restore the property to its approximate value before the casualty. 1040ez 2009 tax form Car value. 1040ez 2009 tax form   Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. 1040ez 2009 tax form You can use the books' retail values and modify them by factors such as the mileage and condition of your car to figure its value. 1040ez 2009 tax form The prices are not official, but they may be useful in determining value and suggesting relative prices for comparison with current sales and offerings in your area. 1040ez 2009 tax form If your car is not listed in the books, determine its value from other sources. 1040ez 2009 tax form A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. 1040ez 2009 tax form Figuring Decrease in FMV — Items Not To Consider You generally should not consider the following items when attempting to establish the decrease in FMV of your property. 1040ez 2009 tax form Cost of protection. 1040ez 2009 tax form   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. 1040ez 2009 tax form The amount you spend on insurance or to board up your house against a storm is not part of your loss. 1040ez 2009 tax form If the property is business property, these expenses are deductible as business expenses. 1040ez 2009 tax form   If you make permanent improvements to your property to protect it against a casualty or theft, add the cost of these improvements to your basis in the property. 1040ez 2009 tax form An example would be the cost of a dike to prevent flooding. 1040ez 2009 tax form Exception. 1040ez 2009 tax form   You cannot increase your basis in the property by, or deduct as a business expense, any expenditures you made with respect to qualified disaster mitigation payments (discussed later under Disaster Area Losses ). 1040ez 2009 tax form Related expenses. 1040ez 2009 tax form   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. 1040ez 2009 tax form However, they may be deductible as business expenses if the damaged or stolen property is business property. 1040ez 2009 tax form Replacement cost. 1040ez 2009 tax form   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. 1040ez 2009 tax form Example. 1040ez 2009 tax form You bought a new chair 4 years ago for $300. 1040ez 2009 tax form In April, a fire destroyed the chair. 1040ez 2009 tax form You estimate that it would cost $500 to replace it. 1040ez 2009 tax form If you had sold the chair before the fire, you estimate that you could have received only $100 for it because it was 4 years old. 1040ez 2009 tax form The chair was not insured. 1040ez 2009 tax form Your loss is $100, the FMV of the chair before the fire. 1040ez 2009 tax form It is not $500, the replacement cost. 1040ez 2009 tax form Sentimental value. 1040ez 2009 tax form   Do not consider sentimental value when determining your loss. 1040ez 2009 tax form If a family portrait, heirloom, or keepsake is damaged, destroyed, or stolen, you must base your loss on its FMV, as limited by your adjusted basis in the property. 1040ez 2009 tax form Decline in market value of property in or near casualty area. 1040ez 2009 tax form   A decrease in the value of your property because it is in or near an area that suffered a casualty, or that might again suffer a casualty, is not to be taken into consideration. 1040ez 2009 tax form You have a loss only for actual casualty damage to your property. 1040ez 2009 tax form However, if your home is in a federally declared disaster area, see Disaster Area Losses , later. 1040ez 2009 tax form Costs of photographs and appraisals. 1040ez 2009 tax form   Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. 1040ez 2009 tax form Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. 1040ez 2009 tax form   Appraisals are used to figure the decrease in FMV because of a casualty or theft. 1040ez 2009 tax form See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. 1040ez 2009 tax form   The costs of photographs and appraisals used as evidence of the value and condition of property damaged as a result of a casualty are not a part of the loss. 1040ez 2009 tax form They are expenses in determining your tax liability. 1040ez 2009 tax form You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). 1040ez 2009 tax form Adjusted Basis The measure of your investment in the property you own is its basis. 1040ez 2009 tax form For property you buy, your basis is usually its cost to you. 1040ez 2009 tax form For property you acquire in some other way, such as inheriting it, receiving it as a gift, or getting it in a nontaxable exchange, you must figure your basis in another way, as explained in Publication 551. 1040ez 2009 tax form If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. 1040ez 2009 tax form Adjustments to basis. 1040ez 2009 tax form    While you own the property, various events may take place that change your basis. 1040ez 2009 tax form Some events, such as additions or permanent improvements to the property, increase basis. 1040ez 2009 tax form Others, such as earlier casualty losses and depreciation deductions, decrease basis. 1040ez 2009 tax form When you add the increases to the basis and subtract the decreases from the basis, the result is your adjusted basis. 1040ez 2009 tax form See Publication 551 for more information on figuring the basis of your property. 1040ez 2009 tax form Insurance and Other Reimbursements If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. 1040ez 2009 tax form You do not have a casualty or theft loss to the extent you are reimbursed. 1040ez 2009 tax form If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. 1040ez 2009 tax form You must reduce your loss even if you do not receive payment until a later tax year. 1040ez 2009 tax form See Reimbursement Received After Deducting Loss , later. 1040ez 2009 tax form Failure to file a claim for reimbursement. 1040ez 2009 tax form   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. 1040ez 2009 tax form Otherwise, you cannot deduct this loss as a casualty or theft. 1040ez 2009 tax form The portion of the loss usually not covered by insurance (for example, a deductible) is not subject to this rule. 1040ez 2009 tax form Example. 1040ez 2009 tax form You have a car insurance policy with a $1,000 deductible. 1040ez 2009 tax form Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the $100 and 10% rules, discussed later). 1040ez 2009 tax form This is true, even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. 1040ez 2009 tax form Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. 1040ez 2009 tax form Other types of reimbursements are discussed next. 1040ez 2009 tax form Also see the Instructions for Form 4684. 1040ez 2009 tax form Employer's emergency disaster fund. 1040ez 2009 tax form   If you receive money from your employer's emergency disaster fund and you must use that money to rehabilitate or replace property on which you are claiming a casualty loss deduction, you must take that money into consideration in computing the casualty loss deduction. 1040ez 2009 tax form Take into consideration only the amount you used to replace your destroyed or damaged property. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your home was extensively damaged by a tornado. 1040ez 2009 tax form Your loss after reimbursement from your insurance company was $10,000. 1040ez 2009 tax form Your employer set up a disaster relief fund for its employees. 1040ez 2009 tax form Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. 1040ez 2009 tax form You received $4,000 from the fund and spent the entire amount on repairs to your home. 1040ez 2009 tax form In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. 1040ez 2009 tax form Your casualty loss before applying the deduction limits (discussed later) is $6,000. 1040ez 2009 tax form Cash gifts. 1040ez 2009 tax form   If you receive excludable cash gifts as a disaster victim and there are no limits on how you can use the money, you do not reduce your casualty loss by these excludable cash gifts. 1040ez 2009 tax form This applies even if you use the money to pay for repairs to property damaged in the disaster. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your home was damaged by a hurricane. 1040ez 2009 tax form Relatives and neighbors made cash gifts to you that were excludable from your income. 1040ez 2009 tax form You used part of the cash gifts to pay for repairs to your home. 1040ez 2009 tax form There were no limits or restrictions on how you could use the cash gifts. 1040ez 2009 tax form It was an excludable gift, so the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. 1040ez 2009 tax form Insurance payments for living expenses. 1040ez 2009 tax form   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. 1040ez 2009 tax form You lose the use of your main home because of a casualty. 1040ez 2009 tax form Government authorities do not allow you access to your main home because of a casualty or threat of one. 1040ez 2009 tax form Inclusion in income. 1040ez 2009 tax form   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. 1040ez 2009 tax form Report this amount on Form 1040, line 21. 1040ez 2009 tax form However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. 1040ez 2009 tax form See Qualified disaster relief payments , later, under Disaster Area Losses. 1040ez 2009 tax form   A temporary increase in your living expenses is the difference between the actual living expenses you and your family incurred during the period you could not use your home and your normal living expenses for that period. 1040ez 2009 tax form Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. 1040ez 2009 tax form Generally, these expenses include the amounts you pay for the following. 1040ez 2009 tax form Renting suitable housing. 1040ez 2009 tax form Transportation. 1040ez 2009 tax form Food. 1040ez 2009 tax form Utilities. 1040ez 2009 tax form Miscellaneous services. 1040ez 2009 tax form Normal living expenses consist of these same expenses that you would have incurred but did not because of the casualty or the threat of one. 1040ez 2009 tax form Example. 1040ez 2009 tax form As a result of a fire, you vacated your apartment for a month and moved to a motel. 1040ez 2009 tax form You normally pay $525 a month for rent. 1040ez 2009 tax form None was charged for the month the apartment was vacated. 1040ez 2009 tax form Your motel rent for this month was $1,200. 1040ez 2009 tax form You normally pay $200 a month for food. 1040ez 2009 tax form Your food expenses for the month you lived in the motel were $400. 1040ez 2009 tax form You received $1,100 from your insurance company to cover your living expenses. 1040ez 2009 tax form You determine the payment you must include in income as follows. 1040ez 2009 tax form 1. 1040ez 2009 tax form Insurance payment for living expenses $1,100 2. 1040ez 2009 tax form Actual expenses during the month you are unable to use your home because of the fire $1,600   3. 1040ez 2009 tax form Normal living expenses 725   4. 1040ez 2009 tax form Temporary increase in living expenses: Subtract line 3  from line 2 875 5. 1040ez 2009 tax form Amount of payment includible in income: Subtract line 4 from line 1 $ 225 Tax year of inclusion. 1040ez 2009 tax form   You include the taxable part of the insurance payment in income for the year you regain the use of your main home or, if later, for the year you receive the taxable part of the insurance payment. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your main home was destroyed by a tornado in August 2011. 1040ez 2009 tax form You regained use of your home in November 2012. 1040ez 2009 tax form The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. 1040ez 2009 tax form You include this amount in income on your 2012 Form 1040. 1040ez 2009 tax form If, in 2013, you receive further payments to cover the living expenses you had in 2011 and 2012, you must include those payments in income on your 2013 Form 1040. 1040ez 2009 tax form Disaster relief. 1040ez 2009 tax form   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss, unless they are replacements for lost or destroyed property. 1040ez 2009 tax form Table 2. 1040ez 2009 tax form Deduction Limit Rules for Personal-Use and Employee Property       $100 Rule 10% Rule 2% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. 1040ez 2009 tax form Apply this rule to personal-use property after you have figured the amount of your loss. 1040ez 2009 tax form You must reduce your total casualty or theft loss by 10% of your adjusted gross income. 1040ez 2009 tax form Apply this rule to personal-use property after you reduce each loss by $100 (the $100 rule). 1040ez 2009 tax form You must reduce your total casualty or theft loss by 2% of your adjusted gross income. 1040ez 2009 tax form Apply this rule to property you used in performing services as an employee after you have figured the amount of your loss and added it to your job expenses and most other miscellaneous itemized deductions. 1040ez 2009 tax form Single Event Apply this rule only once, even if many pieces of property are affected. 1040ez 2009 tax form Apply this rule only once, even if many pieces of property are affected. 1040ez 2009 tax form Apply this rule only once, even if many pieces of property are affected. 1040ez 2009 tax form More Than One Event Apply to the loss from each event. 1040ez 2009 tax form Apply to the total of all your losses from all events. 1040ez 2009 tax form Apply to the total of all your losses from all events. 1040ez 2009 tax form More Than One Person— With Loss From the   Same Event  (other than a married couple  filing jointly) Apply separately to each person. 1040ez 2009 tax form Apply separately to each person. 1040ez 2009 tax form Apply separately to each person. 1040ez 2009 tax form Married Couple—  With Loss From the  Same Event Filing Joint Return Apply as if you were one person. 1040ez 2009 tax form Apply as if you were one person. 1040ez 2009 tax form Apply as if you were one person. 1040ez 2009 tax form Filing Separate Return Apply separately to each spouse. 1040ez 2009 tax form Apply separately to each spouse. 1040ez 2009 tax form Apply separately to each spouse. 1040ez 2009 tax form More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. 1040ez 2009 tax form Apply separately to each owner of jointly owned property. 1040ez 2009 tax form Apply separately to each owner of jointly owned property. 1040ez 2009 tax form    Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster, are not taxable income to you. 1040ez 2009 tax form For more information, see Qualified disaster relief payments under Disaster Area Losses, later. 1040ez 2009 tax form   Disaster unemployment assistance payments are unemployment benefits that are taxable. 1040ez 2009 tax form   Generally, disaster relief grants received under the Robert T. 1040ez 2009 tax form Stafford Disaster Relief and Emergency Assistance Act are not included in your income. 1040ez 2009 tax form See Federal disaster relief grants , later, under Disaster Area Losses. 1040ez 2009 tax form Loan proceeds. 1040ez 2009 tax form   Do not reduce your casualty loss by loan proceeds you use to rehabilitate or replace property on which you are claiming a casualty loss deduction. 1040ez 2009 tax form If you have a federal loan that is canceled (forgiven), see Federal loan canceled , later, under Disaster Area Losses. 1040ez 2009 tax form Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using the amount of your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. 1040ez 2009 tax form This section explains the adjustment you may have to make. 1040ez 2009 tax form Actual reimbursement less than expected. 1040ez 2009 tax form   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your personal car had a FMV of $2,000 when it was destroyed in a collision with another car in 2012. 1040ez 2009 tax form The accident was due to the negligence of the other driver. 1040ez 2009 tax form At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. 1040ez 2009 tax form You did not have a deductible loss in 2012. 1040ez 2009 tax form In January 2013, the court awards you a judgment of $2,000. 1040ez 2009 tax form However, in July it becomes apparent that you will be unable to collect any amount from the other driver. 1040ez 2009 tax form Since this is your only casualty or theft loss, you can deduct the loss in 2013 that is figured by applying the Deduction Limits (discussed later). 1040ez 2009 tax form Actual reimbursement more than expected. 1040ez 2009 tax form   If you later receive more reimbursement than you expected, after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. 1040ez 2009 tax form However, if any part of the original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. 1040ez 2009 tax form You do not refigure your tax for the year you claimed the deduction. 1040ez 2009 tax form See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. 1040ez 2009 tax form Example. 1040ez 2009 tax form In 2012, a hurricane destroyed your motorboat. 1040ez 2009 tax form Your loss was $3,000, and you estimated that your insurance would cover $2,500 of it. 1040ez 2009 tax form You did not itemize deductions on your 2012 return, so you could not deduct the loss. 1040ez 2009 tax form When the insurance company reimburses you for the loss, you do not report any of the reimbursement as income. 1040ez 2009 tax form This is true even if it is for the full $3,000 because you did not deduct the loss on your 2012 return. 1040ez 2009 tax form The loss did not reduce your tax. 1040ez 2009 tax form    If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. 1040ez 2009 tax form If you have already taken a deduction for a loss and you receive the reimbursement in a later year, you may have to include the gain in your income for the later year. 1040ez 2009 tax form Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. 1040ez 2009 tax form You may be able to postpone reporting any remaining gain as explained under Postponement of Gain, later. 1040ez 2009 tax form Actual reimbursement same as expected. 1040ez 2009 tax form   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. 1040ez 2009 tax form Example. 1040ez 2009 tax form In December 2013, you had a collision while driving your personal car. 1040ez 2009 tax form Repairs to the car cost $950. 1040ez 2009 tax form You had $100 deductible collision insurance. 1040ez 2009 tax form Your insurance company agreed to reimburse you for the rest of the damage. 1040ez 2009 tax form Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. 1040ez 2009 tax form Due to the $100 rule, you cannot deduct the $100 you paid as the deductible. 1040ez 2009 tax form When you receive the $850 from the insurance company in 2014, do not report it as income. 1040ez 2009 tax form Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. 1040ez 2009 tax form The deduction for casualty and theft losses of employee property and personal-use property is limited. 1040ez 2009 tax form A loss on employee property is subject to the 2% rule, discussed next. 1040ez 2009 tax form With certain exceptions, a loss on property you own for your personal use is subject to the $100 and 10% rules, discussed later. 1040ez 2009 tax form The 2%, $100, and 10% rules are also summarized in Table 2 . 1040ez 2009 tax form Losses on business property (other than employee property) and income-producing property are not subject to these rules. 1040ez 2009 tax form However, if your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. 1040ez 2009 tax form See the Instructions for Form 4684, Section B. 1040ez 2009 tax form If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. 1040ez 2009 tax form 2% Rule The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040) or Form 1040NR, Schedule A, must be reduced by 2% of your adjusted gross income. 1040ez 2009 tax form Employee property is property used in performing services as an employee. 1040ez 2009 tax form $100 Rule After you have figured your casualty or theft loss on personal-use property, as discussed earlier, you must reduce that loss by $100. 1040ez 2009 tax form This reduction applies to each total casualty or theft loss. 1040ez 2009 tax form It does not matter how many pieces of property are involved in an event. 1040ez 2009 tax form Only a single $100 reduction applies. 1040ez 2009 tax form Example. 1040ez 2009 tax form You have $750 deductible collision insurance on your car. 1040ez 2009 tax form The car is damaged in a collision. 1040ez 2009 tax form The insurance company pays you for the damage minus the $750 deductible. 1040ez 2009 tax form The amount of the casualty loss is based solely on the deductible. 1040ez 2009 tax form The casualty loss is $650 ($750 − $100) because the first $100 of a casualty loss on personal-use property is not deductible. 1040ez 2009 tax form Single event. 1040ez 2009 tax form   Generally, events closely related in origin cause a single casualty. 1040ez 2009 tax form It is a single casualty when the damage is from two or more closely related causes, such as wind and flood damage caused by the same storm. 1040ez 2009 tax form A single casualty may also damage two or more pieces of property, such as a hailstorm that damages both your home and your car parked in your driveway. 1040ez 2009 tax form Example 1. 1040ez 2009 tax form A thunderstorm destroyed your pleasure boat. 1040ez 2009 tax form You also lost some boating equipment in the storm. 1040ez 2009 tax form Your loss was $5,000 on the boat and $1,200 on the equipment. 1040ez 2009 tax form Your insurance company reimbursed you $4,500 for the damage to your boat. 1040ez 2009 tax form You had no insurance coverage on the equipment. 1040ez 2009 tax form Your casualty loss is from a single event and the $100 rule applies once. 1040ez 2009 tax form Figure your loss before applying the 10% rule (discussed later) as follows. 1040ez 2009 tax form     Boat Equipment 1. 1040ez 2009 tax form Loss $5,000 $1,200 2. 1040ez 2009 tax form Subtract insurance 4,500 -0- 3. 1040ez 2009 tax form Loss after reimbursement $ 500 $1,200 4. 1040ez 2009 tax form Total loss $1,700 5. 1040ez 2009 tax form Subtract $100 100 6. 1040ez 2009 tax form Loss before 10% rule $1,600 Example 2. 1040ez 2009 tax form Thieves broke into your home in January and stole a ring and a fur coat. 1040ez 2009 tax form You had a loss of $200 on the ring and $700 on the coat. 1040ez 2009 tax form This is a single theft. 1040ez 2009 tax form The $100 rule applies to the total $900 loss. 1040ez 2009 tax form Example 3. 1040ez 2009 tax form In September, hurricane winds blew the roof off your home. 1040ez 2009 tax form Flood waters caused by the hurricane further damaged your home and destroyed your furniture and personal car. 1040ez 2009 tax form This is considered a single casualty. 1040ez 2009 tax form The $100 rule is applied to your total loss from the flood waters and the wind. 1040ez 2009 tax form More than one loss. 1040ez 2009 tax form   If you have more than one casualty or theft loss during your tax year, you must reduce each loss by $100. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your family car was damaged in an accident in January. 1040ez 2009 tax form Your loss after the insurance reimbursement was $75. 1040ez 2009 tax form In February, your car was damaged in another accident. 1040ez 2009 tax form This time your loss after the insurance reimbursement was $90. 1040ez 2009 tax form Apply the $100 rule to each separate casualty loss. 1040ez 2009 tax form Since neither accident resulted in a loss of over $100, you are not entitled to any deduction for these accidents. 1040ez 2009 tax form More than one person. 1040ez 2009 tax form   If two or more individuals (other than a husband and wife filing a joint return) have losses from the same casualty or theft, the $100 rule applies separately to each individual. 1040ez 2009 tax form Example. 1040ez 2009 tax form A fire damaged your house and also damaged the personal property of your house guest. 1040ez 2009 tax form You must reduce your loss by $100. 1040ez 2009 tax form Your house guest must reduce his or her loss by $100. 1040ez 2009 tax form Married taxpayers. 1040ez 2009 tax form   If you and your spouse file a joint return, you are treated as one individual in applying the $100 rule. 1040ez 2009 tax form It does not matter whether you own the property jointly or separately. 1040ez 2009 tax form   If you and your spouse have a casualty or theft loss and you file separate returns, each of you must reduce your loss by $100. 1040ez 2009 tax form This is true even if you own the property jointly. 1040ez 2009 tax form If one spouse owns the property, only that spouse can figure a loss deduction on a separate return. 1040ez 2009 tax form   If the casualty or theft loss is on property you own as tenants by the entirety, each of you can figure your deduction on only one-half of the loss on separate returns. 1040ez 2009 tax form Neither of you can figure your deduction on the entire loss on a separate return. 1040ez 2009 tax form Each of you must reduce the loss by $100. 1040ez 2009 tax form More than one owner. 1040ez 2009 tax form   If two or more individuals (other than a husband and wife filing a joint return) have a loss on property jointly owned, the $100 rule applies separately to each. 1040ez 2009 tax form For example, if two sisters live together in a home they own jointly and they have a casualty loss on the home, the $100 rule applies separately to each sister. 1040ez 2009 tax form 10% Rule You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. 1040ez 2009 tax form Apply this rule after you reduce each loss by $100. 1040ez 2009 tax form For more information, see the Form 4684 instructions. 1040ez 2009 tax form If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. 1040ez 2009 tax form Example. 1040ez 2009 tax form In June, you discovered that your house had been burglarized. 1040ez 2009 tax form Your loss after insurance reimbursement was $2,000. 1040ez 2009 tax form Your adjusted gross income for the year you discovered the theft is $29,500. 1040ez 2009 tax form Figure your theft loss as follows. 1040ez 2009 tax form 1. 1040ez 2009 tax form Loss after insurance $2,000 2. 1040ez 2009 tax form Subtract $100 100 3. 1040ez 2009 tax form Loss after $100 rule $1,900 4. 1040ez 2009 tax form Subtract 10% of $29,500 AGI $2,950 5. 1040ez 2009 tax form Theft loss deduction $-0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($2,950). 1040ez 2009 tax form More than one loss. 1040ez 2009 tax form   If you have more than one casualty or theft loss during your tax year, reduce each loss by any reimbursement and by $100. 1040ez 2009 tax form Then you must reduce the total of all your losses by 10% of your adjusted gross income. 1040ez 2009 tax form Example. 1040ez 2009 tax form In March, you had a car accident that totally destroyed your car. 1040ez 2009 tax form You did not have collision insurance on your car, so you did not receive any insurance reimbursement. 1040ez 2009 tax form Your loss on the car was $1,800. 1040ez 2009 tax form In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items you had stored there. 1040ez 2009 tax form Your loss on the basement items after reimbursement was $2,100. 1040ez 2009 tax form Your adjusted gross income for the year that the accident and fire occurred is $25,000. 1040ez 2009 tax form You figure your casualty loss deduction as follows. 1040ez 2009 tax form     Car Basement 1. 1040ez 2009 tax form Loss $1,800 $2,100 2. 1040ez 2009 tax form Subtract $100 per incident 100 100 3. 1040ez 2009 tax form Loss after $100 rule $1,700 $2,000 4. 1040ez 2009 tax form Total loss $3,700 5. 1040ez 2009 tax form Subtract 10% of $25,000 AGI 2,500 6. 1040ez 2009 tax form Casualty loss deduction $1,200 Married taxpayers. 1040ez 2009 tax form   If you and your spouse file a joint return, you are treated as one individual in applying the 10% rule. 1040ez 2009 tax form It does not matter if you own the property jointly or separately. 1040ez 2009 tax form   If you file separate returns, the 10% rule applies to each return on which a loss is claimed. 1040ez 2009 tax form More than one owner. 1040ez 2009 tax form   If two or more individuals (other than husband and wife filing a joint return) have a loss on property that is owned jointly, the 10% rule applies separately to each. 1040ez 2009 tax form Gains and losses. 1040ez 2009 tax form   If you have casualty or theft gains as well as losses to personal-use property, you must compare your total gains to your total losses. 1040ez 2009 tax form Do this after you have reduced each loss by any reimbursements and by $100 but before you have reduced the losses by 10% of your adjusted gross income. 1040ez 2009 tax form Casualty or theft gains do not include gains you choose to postpone. 1040ez 2009 tax form See Postponement of Gain, later. 1040ez 2009 tax form Losses more than gains. 1040ez 2009 tax form   If your losses are more than your recognized gains, subtract your gains from your losses and reduce the result by 10% of your adjusted gross income. 1040ez 2009 tax form The rest, if any, is your deductible loss from personal-use property. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your theft loss after reducing it by reimbursements and by $100 is $2,700. 1040ez 2009 tax form Your casualty gain is $700. 1040ez 2009 tax form Your loss is more than your gain, so you must reduce your $2,000 net loss ($2,700 − $700) by 10% of your adjusted gross income. 1040ez 2009 tax form Gains more than losses. 1040ez 2009 tax form   If your recognized gains are more than your losses, subtract your losses from your gains. 1040ez 2009 tax form The difference is treated as a capital gain and must be reported on Schedule D (Form 1040). 1040ez 2009 tax form The 10% rule does not apply to your gains. 1040ez 2009 tax form Example. 1040ez 2009 tax form Your theft loss is $600 after reducing it by reimbursements and by $100. 1040ez 2009 tax form Your casualty gain is $1,600. 1040ez 2009 tax form Because your gain is more than your loss, you must report the $1,000 net gain ($1,600 − $600) on Schedule D (Form 1040). 1040ez 2009 tax form More information. 1040ez 2009 tax form   For information on how to figure recognized gains, see Figuring a Gain , later. 1040ez 2009 tax form Figuring the Deduction Generally, you must figure your loss separately for each item stolen, damaged, or destroyed. 1040ez 2009 tax form However, a special rule applies to real property you own for personal use. 1040ez 2009 tax form Real property. 1040ez 2009 tax form   In figuring a loss to real estate you own for personal use, all improvements (such as buildings and ornamental trees and the land containing the improvements) are considered together. 1040ez 2009 tax form Example 1. 1040ez 2009 tax form In June, a fire destroyed your lakeside cottage, which cost $144,800 (including $14,500 for the land) several years ago. 1040ez 2009 tax form (Your land was not damaged. 1040ez 2009 tax form ) This was your only casualty or theft loss for the year. 1040ez 2009 tax form The FMV of the property immediately before the fire was $180,000 ($145,000 for the cottage and $35,000 for the land). 1040ez 2009 tax form The FMV immediately after the fire was $35,000 (value of the land). 1040ez 2009 tax form You collected $130,000 from the insurance company. 1040ez 2009 tax form Your adjusted gross income for the year the fire occurred is $80,000. 1040ez 2009 tax form Your deduction for the casualty loss is $6,700, figured in the following manner. 1040ez 2009 tax form 1. 1040ez 2009 tax form Adjusted basis of the entire property (cost in this example) $144,800 2. 1040ez 2009 tax form FMV of entire property  before fire $180,000 3. 1040ez 2009 tax form FMV of entire property after fire 35,000 4. 1040ez 2009 tax form Decrease in FMV of entire property (line 2 − line 3) $145,000 5. 1040ez 2009 tax form Loss (smaller of line 1 or line 4) $144,800 6. 1040ez 2009 tax form Subtract insurance 130,000 7. 1040ez 2009 tax form Loss after reimbursement $14,800 8. 1040ez 2009 tax form Subtract $100 100 9. 1040ez 2009 tax form Loss after $100 rule $14,700 10. 1040ez 2009 tax form Subtract 10% of $80,000 AGI 8,000 11. 1040ez 2009 tax form Casualty loss deduction $ 6,700 Example 2. 1040ez 2009 tax form You bought your home a few years ago. 1040ez 2009 tax form You paid $150,000 ($10,000 for the land and $140,000 for the house). 1040ez 2009 tax form You also spent an additional $2,000 for landscaping. 1040ez 2009 tax form This year a fire destroyed your home. 1040ez 2009 tax form The fire also damaged the shrubbery and trees in your yard. 1040ez 2009 tax form The fire was your only casualty or theft loss this year. 1040ez 2009 tax form Competent appraisers valued the property as a whole at $175,000 before the fire, but only $50,000 after the fire. 1040ez 2009 tax form Shortly after the fire, the insurance company paid you $95,000 for the loss. 1040ez 2009 tax form Your adjusted gross income for this year is $70,000. 1040ez 2009 tax form You figure your casualty loss deduction as follows. 1040ez 2009 tax form 1. 1040ez 2009 tax form Adjusted basis of the entire property (cost of land, building, and landscaping) $152,000 2. 1040ez 2009 tax form FMV of entire property  before fire $175,000 3. 1040ez 2009 tax form FMV of entire property after fire 50,000 4. 1040ez 2009 tax form Decrease in FMV of entire property (line 2 − line 3) $125,000 5. 1040ez 2009 tax form Loss (smaller of line 1 or line 4) $125,000 6. 1040ez 2009 tax form Subtract insurance 95,000 7. 1040ez 2009 tax form Loss after reimbursement $30,000 8. 1040ez 2009 tax form Subtract $100 100 9. 1040ez 2009 tax form Loss after $100 rule $29,900 10. 1040ez 2009 tax form Subtract 10% of $70,000 AGI 7,000 11. 1040ez 2009 tax form Casualty loss deduction $ 22,900 Personal property. 1040ez 2009 tax form   Personal property is any property that is not real property. 1040ez 2009 tax form If your personal property is stolen or is damaged or destroyed by a casualty, you must figure your loss separately for each item of property. 1040ez 2009 tax form Then combine these separate losses to figure the total loss. 1040ez 2009 tax form Reduce the total loss by $100 and 10% of your adjusted gross income to figure the loss deduction. 1040ez 2009 tax form Example 1. 1040ez 2009 tax form In August, a storm destroyed your pleasure boat, which cost $18,500. 1040ez 2009 tax form This was your only casualty or theft loss for the year. 1040ez 2009 tax form Its FMV immediately before the storm was $17,000. 1040ez 2009 tax form You had no insurance, but were able to salvage the motor of the boat and sell it for $200. 1040ez 2009 tax form Your adjusted gross income for the year the casualty occurred is $70,000. 1040ez 2009 tax form Although the motor was sold separately, it is part of the boat and not a separate item of property. 1040ez 2009 tax form You figure your casualty loss deduction as follows. 1040ez 2009 tax form 1. 1040ez 2009 tax form Adjusted basis (cost in this example) $18,500 2. 1040ez 2009 tax form FMV before storm $17,000 3. 1040ez 2009 tax form FMV after storm 200 4. 1040ez 2009 tax form Decrease in FMV  (line 2 − line 3) $16,800 5. 1040ez 2009 tax form Loss (smaller of line 1 or line 4) $16,800 6. 1040ez 2009 tax form Subtract insurance -0- 7. 1040ez 2009 tax form Loss after reimbursement $16,800 8. 1040ez 2009 tax form Subtract $100 100 9. 1040ez 2009 tax form Loss after $100 rule $16,700 10. 1040ez 2009 tax form Subtract 10% of $70,000 AGI 7,000 11. 1040ez 2009 tax form Casualty loss deduction $ 9,700 Example 2. 1040ez 2009 tax form In June, you were involved in an auto accident that totally destroyed your personal car and your antique pocket watch. 1040ez 2009 tax form You had bought the car for $30,000. 1040ez 2009 tax form The FMV of the car just before the accident was $17,500. 1040ez 2009 tax form Its FMV just after the accident was $180 (scrap value). 1040ez 2009 tax form Your insurance company reimbursed you $16,000. 1040ez 2009 tax form Your watch was not insured. 1040ez 2009 tax form You had purchased it for $250. 1040ez 2009 tax form Its FMV just before the accident was $500. 1040ez 2009 tax form Your adjusted gross income for the year the accident occurred is $97,000. 1040ez 2009 tax form Your casualty loss deduction is zero, figured as follows. 1040ez 2009 tax form     Car Watch 1. 1040ez 2009 tax form Adjusted basis (cost) $30,000 $250 2. 1040ez 2009 tax form FMV before accident $17,500 $500 3. 1040ez 2009 tax form FMV after accident 180 -0- 4. 1040ez 2009 tax form Decrease in FMV (line 2 − line 3) $17,320 $500 5. 1040ez 2009 tax form Loss (smaller of line 1 or line 4) $17,320 $250 6. 1040ez 2009 tax form Subtract insurance 16,000 -0- 7. 1040ez 2009 tax form Loss after reimbursement $1,320 $250 8. 1040ez 2009 tax form Total loss $1,570 9. 1040ez 2009 tax form Subtract $100 100 10. 1040ez 2009 tax form Loss after $100 rule $1,470 11. 1040ez 2009 tax form Subtract 10% of $97,000 AGI 9,700 12. 1040ez 2009 tax form Casualty loss deduction $ -0- Both real and personal properties. 1040ez 2009 tax form   When a casualty involves both real and personal properties, you must figure the loss separately for each type of property. 1040ez 2009 tax form However, you apply a single $100 reduction to the total loss. 1040ez 2009 tax form Then, you apply the 10% rule to figure the casualty loss deduction. 1040ez 2009 tax form Example. 1040ez 2009 tax form In July, a hurricane damaged your home, which cost you $164,000 including land. 1040ez 2009 tax form The FMV of the property (both building and land) immediately before the storm was $170,000 and its FMV immediately after the storm was $100,000. 1040ez 2009 tax form Your household furnishings were also damaged. 1040ez 2009 tax form You separately figured the loss on each damaged household item and arrived at a total loss of $600. 1040ez 2009 tax form You collected $50,000 from the insurance company for the damage to your home, but your household furnishings were not insured. 1040ez 2009 tax form Your adjusted gross income for the year the hurricane occurred is $65,000. 1040ez 2009 tax form You figure your casualty loss deduction from the hurricane in the following manner. 1040ez 2009 tax form 1. 1040ez 2009 tax form Adjusted basis of real property (cost in this example) $164,000 2. 1040ez 2009 tax form FMV of real property before hurricane $170,000 3. 1040ez 2009 tax form FMV of real property after hurricane 100,000 4. 1040ez 2009 tax form Decrease in FMV of real property (line 2 − line 3) $70,000 5. 1040ez 2009 tax form Loss on real property (smaller of line 1 or line 4) $70,000 6. 1040ez 2009 tax form Subtract insurance 50,000 7. 1040ez 2009 tax form Loss on real property after reimbursement $20,000 8. 1040ez 2009 tax form Loss on furnishings $600 9. 1040ez 2009 tax form Subtract insurance -0- 10. 1040ez 2009 tax form Loss on furnishings after reimbursement $600 11. 1040ez 2009 tax form Total loss (line 7 plus line 10) $20,600 12. 1040ez 2009 tax form Subtract $100 100 13. 1040ez 2009 tax form Loss after $100 rule $20,500 14. 1040ez 2009 tax form Subtract 10% of $65,000 AGI 6,500 15. 1040ez 2009 tax form Casualty loss deduction $14,000 Property used partly for business and partly for personal purposes. 1040ez 2009 tax form   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use portion and for the business or income-producing portion. 1040ez 2009 tax form You must figure each loss separately because the losses attributed to these two uses are figured in two different ways. 1040ez 2009 tax form When figuring each loss, allocate the total cost or basis, the FMV before and after the casualty or theft loss, and the insurance or other reimbursement between the business and personal use of the property. 1040ez 2009 tax form The $100 rule and the 10% rule apply only to the casualty or theft loss on the personal-use portion of the property. 1040ez 2009 tax form Example. 1040ez 2009 tax form You own a building that you constructed on leased land. 1040ez 2009 tax form You use half of the building for your business and you live in the other half. 1040ez 2009 tax form The cost of the building was $400,000. 1040ez 2009 tax form You made no further improvements or additions to it. 1040ez 2009 tax form A flood in March damaged the entire building. 1040ez 2009 tax form The FMV of the building was $380,000 immediately before the flood and $320,000 afterwards. 1040ez 2009 tax form Your insurance company reimbursed you $40,000 for the flood damage. 1040ez 2009 tax form Depreciation on the business part of the building before the flood totaled $24,000. 1040ez 2009 tax form Your adjusted gross income for the year the flood occurred is $125,000. 1040ez 2009 tax form You have a deductible business casualty loss of $10,000. 1040ez 2009 tax form You do not have a deductible personal casualty loss because of the 10% rule. 1040ez 2009 tax form You figure your loss as follows. 1040ez 2009 tax form     Business   Personal     Part   Part 1. 1040ez 2009 tax form Cost (total $400,000) $200,000   $200,000 2. 1040ez 2009 tax form Subtract depreciation 24,000   -0- 3. 1040ez 2009 tax form Adjusted basis $176,000   $200,000 4. 1040ez 2009 tax form FMV before flood (total $380,000) $190,000   $190,000 5. 1040ez 2009 tax form FMV after flood (total $320,000) 160,000   160,000 6. 1040ez 2009 tax form Decrease in FMV  (line 4 − line 5) $30,000   $30,000 7. 1040ez 2009 tax form Loss (smaller of line 3 or line 6) $30,000   $30,000 8. 1040ez 2009 tax form Subtract insurance 20,000   20,000 9. 1040ez 2009 tax form Loss after reimbursement $10,000   $10,000 10. 1040ez 2009 tax form Subtract $100 on personal-use property -0-   100 11. 1040ez 2009 tax form Loss after $100 rule $10,000   $9,900 12. 1040ez 2009 tax form Subtract 10% of $125,000 AGI on personal-use property -0-   12,500 13. 1040ez 2009 tax form Deductible business loss $10,000     14. 1040ez 2009 tax form Deductible personal loss $-0- Figuring a Gain If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. 1040ez 2009 tax form Your gain is figured as follows. 1040ez 2009 tax form The amount you receive (discussed next), minus Your adjusted basis in the property at the time of the casualty or theft. 1040ez 2009 tax form See Adjusted Basis , earlier, for information on adjusted basis. 1040ez 2009 tax form Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. 1040ez 2009 tax form Amount you receive. 1040ez 2009 tax form   The amount you receive includes any money plus the value of any property you receive minus any expenses you have in obtaining reimbursement. 1040ez 2009 tax form It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. 1040ez 2009 tax form Example. 1040ez 2009 tax form A hurricane destroyed your personal residence and the insurance company awarded you $145,000. 1040ez 2009 tax form You received $140,000 in cash. 1040ez 2009 tax form The remaining $5,000 was paid directly to the holder of a mortgage on the property. 1040ez 2009 tax form The amount you received includes the $5,000 reimbursement paid on the mortgage. 1040ez 2009 tax form Main home destroyed. 1040ez 2009 tax form   If you have a gain because your main home was destroyed, you generally can exclude the gain from your income as if you had sold or exchanged your home. 1040ez 2009 tax form You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). 1040ez 2009 tax form To exclude a gain, you generally must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date it was destroyed. 1040ez 2009 tax form For information on this exclusion, see Publication 523. 1040ez 2009 tax form If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. 1040ez 2009 tax form See Postponement of Gain , later. 1040ez 2009 tax form Reporting a gain. 1040ez 2009 tax form   You generally must report your gain as income in the year you receive the reimbursement. 1040ez 2009 tax form However, you do not have to report your gain if you meet certain requirements and choose to postpone reporting the gain according to the rules explained under Postponement of Gain, next. 1040ez 2009 tax form   For information on how to report a gain, see How To Report Gains and Losses , later. 1040ez 2009 tax form    If you have a casualty or theft gain on personal-use property that you choose to postpone reporting (as explained next) and you also have another casualty or theft loss on personal-use property, do not consider the gain you are postponing when figuring your casualty or theft loss deduction. 1040ez 2009 tax form See 10% Rule under Deduction Limits, earlier. 1040ez 2009 tax form Postponement of Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed or stolen property. 1040ez 2009 tax form Your basis in the new property is generally the same as your adjusted basis in the property it replaces. 1040ez 2009 tax form You must ordinarily report the gain on your stolen or destroyed property if you receive money or unlike property as reimbursement. 1040ez 2009 tax form However, you can choose to postpone reporting the gain if you purchase property that is similar or related in service or use to the stolen or destroyed property within a specified replacement period, discussed later. 1040ez 2009 tax form You also can choose to postpone reporting the gain if you purchase a controlling interest (at least 80%) in a corporation owning property that is similar or related in service or use to the property. 1040ez 2009 tax form See Controlling interest in a corporation , later. 1040ez 2009 tax form If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. 1040ez 2009 tax form To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. 1040ez 2009 tax form If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. 1040ez 2009 tax form Example. 1040ez 2009 tax form In 1970, you bought an oceanfront cottage for your personal use at a cost of $18,000. 1040ez 2009 tax form You made no further improvements or additions to it. 1040ez 2009 tax form When a storm destroyed the cottage this January, the cottage was worth $250,000. 1040ez 2009 tax form You received $146,000 from the insurance company in March. 1040ez 2009 tax form You had a gain of $128,000 ($146,000 − $18,000). 1040ez 2009 tax form You spent $144,000 to rebuild the cottage. 1040ez 2009 tax form Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. 1040ez 2009 tax form Buying replacement property from a related person. 1040ez 2009 tax form   You cannot postpone reporting a gain from a casualty or theft if you buy the replacement property from a related person (discussed later). 1040ez 2009 tax form This rule applies to the following taxpayers. 1040ez 2009 tax form C corporations. 1040ez 2009 tax form Partnerships in which more than 50% of the capital or profits interests is owned by C corporations. 1040ez 2009 tax form All others (including individuals, partnerships — other than those in (2) — and S corporations) if the total realized gain for the tax year on all destroyed or stolen properties on which there are realized gains is more than $100,000. 1040ez 2009 tax form For casualties and thefts described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. 1040ez 2009 tax form If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. 1040ez 2009 tax form If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. 1040ez 2009 tax form Exception. 1040ez 2009 tax form   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the destroyed or stolen property. 1040ez 2009 tax form Related persons. 1040ez 2009 tax form   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. 1040ez 2009 tax form For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. 1040ez 2009 tax form Death of a taxpayer. 1040ez 2009 tax form   If a taxpayer dies after having a gain but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. 1040ez 2009 tax form The executor of the estate or the person succeeding to the funds from the casualty or theft cannot postpone reporting the gain by buying replacement property. 1040ez 2009 tax form Replacement Property You must buy replacement property for the specific purpose of replacing your destroyed or stolen property. 1040ez 2009 tax form Property you acquire as a gift or inheritance does not qualify. 1040ez 2009 tax form You do not have to use the same funds you receive as
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Food, Nutrition, and Fitness

Find information about good nutrition; food safety; eating healthy meals on a budget; finding out if you're eligible for food stamps; and being physically active.

Healthy Eating

Good Nutrition

The foods you choose to eat everyday affect your overall health. Nutrition experts offer easy-to-read tip sheets to help you eat more whole grains, vegetables, fruit, calcium-rich foods, and lean protein.

Use the SuperTracker to set goals, keep track of what you eat, and get tips to help you make healthier choices. 

Food Safety

Each year, about one in six Americans become sick from food poisoning. Although most will recover without any lasting problems, some types of food poisoning can lead to kidney failure, chronic arthritis, brain and nerve damage, and even death.

By following four simple steps, you can help to avoid food poisoning at home:

  1. Clean: wash hands and surfaces often.
  2. Separate: don't cross-contaminate raw meat, poultry, seafood, or eggs with other ready-to-eat foods.
  3. Cook: use a food thermometer to ensure you've cooked to the right temperature.
  4. Chill: refrigerate food within two hours of cooking and never thaw foods on the counter.

On FoodSafety.gov, you can sign up to receive the latest information about food recalls.

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Eating on a Budget

Healthy Eating on a Tight Budget

Food can be expensive, but preparing your own meals is often healthier and less expensive than eating out. Get ideas to help you eat healthy meals on a budget, including:

Families with limited resources may qualify for the Expanded Food and Nutrition Education Program (EFNEP). This federally funded program shows participants how to make a food budget and select nutritious items.

Food Stamps

Food stamps are officially called the Supplemental Nutrition Assistance Program (SNAP). This federally funded program helps struggling families to put food on the table.

Use a pre-screening tool to find out if you're eligible for SNAP.

Learn more about how to apply for food stamp benefits.

Meal Programs for Children

Federally assisted meal programs, such as the National School Lunch Program and the School Breakfast Program, provide nutritionally balanced, low-cost or free meals to eligible children each school day. Learn more about these and other school meal programs.

The Summer Food Service Program helps to fill the nutrition gap for eligible children when school lets out for the summer. 

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Fitness

Being physically active can help you to live longer, feel happier, sleep well, and maintain a healthy weight.

For the biggest benefit, include both aerobic and muscle-strengthening activities in your exercise routine. Aerobic activities, such as walking and running, exercise your heart. Lifting weights and using exercise bands improve your muscle strength.

Get some ideas for increasing your physical activity. You can use the Physical Activity Tracker to monitor your level of activity from week to week.  

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The 1040ez 2009 Tax Form

1040ez 2009 tax form 12. 1040ez 2009 tax form   How To Get Tax Help Table of Contents Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 1040ez 2009 tax form Free help with your tax return. 1040ez 2009 tax form   You can get free help preparing your return nationwide from IRS-certified volunteers. 1040ez 2009 tax form The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 1040ez 2009 tax form The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040ez 2009 tax form Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 1040ez 2009 tax form In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 1040ez 2009 tax form To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 1040ez 2009 tax form gov, download the IRS2Go app, or call 1-800-906-9887. 1040ez 2009 tax form   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040ez 2009 tax form To find the nearest AARP Tax-Aide site, visit AARP's website at www. 1040ez 2009 tax form aarp. 1040ez 2009 tax form org/money/taxaide or call 1-888-227-7669. 1040ez 2009 tax form For more information on these programs, go to IRS. 1040ez 2009 tax form gov and enter “VITA” in the search box. 1040ez 2009 tax form Internet. 1040ez 2009 tax form    IRS. 1040ez 2009 tax form gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 1040ez 2009 tax form Download the free IRS2Go app from the iTunes app store or from Google Play. 1040ez 2009 tax form Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 1040ez 2009 tax form Check the status of your 2013 refund with the Where's My Refund? application on IRS. 1040ez 2009 tax form gov or download the IRS2Go app and select the Refund Status option. 1040ez 2009 tax form The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040ez 2009 tax form Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 1040ez 2009 tax form You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040ez 2009 tax form The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040ez 2009 tax form Use the Interactive Tax Assistant (ITA) to research your tax questions. 1040ez 2009 tax form No need to wait on the phone or stand in line. 1040ez 2009 tax form The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 1040ez 2009 tax form When you reach the response screen, you can print the entire interview and the final response for your records. 1040ez 2009 tax form New subject areas are added on a regular basis. 1040ez 2009 tax form  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 1040ez 2009 tax form gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 1040ez 2009 tax form You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 1040ez 2009 tax form The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 1040ez 2009 tax form When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 1040ez 2009 tax form Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 1040ez 2009 tax form You can also ask the IRS to mail a return or an account transcript to you. 1040ez 2009 tax form Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 1040ez 2009 tax form gov or by calling 1-800-908-9946. 1040ez 2009 tax form Tax return and tax account transcripts are generally available for the current year and the past three years. 1040ez 2009 tax form Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 1040ez 2009 tax form Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 1040ez 2009 tax form If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 1040ez 2009 tax form Check the status of your amended return using Where's My Amended Return? Go to IRS. 1040ez 2009 tax form gov and enter Where's My Amended Return? in the search box. 1040ez 2009 tax form You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040ez 2009 tax form It can take up to 3 weeks from the date you mailed it to show up in our system. 1040ez 2009 tax form Make a payment using one of several safe and convenient electronic payment options available on IRS. 1040ez 2009 tax form gov. 1040ez 2009 tax form Select the Payment tab on the front page of IRS. 1040ez 2009 tax form gov for more information. 1040ez 2009 tax form Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 1040ez 2009 tax form Figure your income tax withholding with the IRS Withholding Calculator on IRS. 1040ez 2009 tax form gov. 1040ez 2009 tax form Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 1040ez 2009 tax form Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 1040ez 2009 tax form gov. 1040ez 2009 tax form Request an Electronic Filing PIN by going to IRS. 1040ez 2009 tax form gov and entering Electronic Filing PIN in the search box. 1040ez 2009 tax form Download forms, instructions and publications, including accessible versions for people with disabilities. 1040ez 2009 tax form Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 1040ez 2009 tax form gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 1040ez 2009 tax form An employee can answer questions about your tax account or help you set up a payment plan. 1040ez 2009 tax form Before you visit, check the Office Locator on IRS. 1040ez 2009 tax form gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 1040ez 2009 tax form If you have a special need, such as a disability, you can request an appointment. 1040ez 2009 tax form Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 1040ez 2009 tax form Apply for an Employer Identification Number (EIN). 1040ez 2009 tax form Go to IRS. 1040ez 2009 tax form gov and enter Apply for an EIN in the search box. 1040ez 2009 tax form Read the Internal Revenue Code, regulations, or other official guidance. 1040ez 2009 tax form Read Internal Revenue Bulletins. 1040ez 2009 tax form Sign up to receive local and national tax news and more by email. 1040ez 2009 tax form Just click on “subscriptions” above the search box on IRS. 1040ez 2009 tax form gov and choose from a variety of options. 1040ez 2009 tax form Phone. 1040ez 2009 tax form    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 1040ez 2009 tax form Download the free IRS2Go app from the iTunes app store or from Google Play. 1040ez 2009 tax form Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 1040ez 2009 tax form gov, or download the IRS2Go app. 1040ez 2009 tax form Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 1040ez 2009 tax form The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040ez 2009 tax form Most VITA and TCE sites offer free electronic filing. 1040ez 2009 tax form Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 1040ez 2009 tax form Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 1040ez 2009 tax form Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 1040ez 2009 tax form If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 1040ez 2009 tax form The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040ez 2009 tax form Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040ez 2009 tax form Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 1040ez 2009 tax form The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040ez 2009 tax form Note, the above information is for our automated hotline. 1040ez 2009 tax form Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 1040ez 2009 tax form Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 1040ez 2009 tax form You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040ez 2009 tax form It can take up to 3 weeks from the date you mailed it to show up in our system. 1040ez 2009 tax form Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 1040ez 2009 tax form You should receive your order within 10 business days. 1040ez 2009 tax form Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 1040ez 2009 tax form If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 1040ez 2009 tax form Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 1040ez 2009 tax form The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 1040ez 2009 tax form These individuals can also contact the IRS through relay services such as the Federal Relay Service. 1040ez 2009 tax form Walk-in. 1040ez 2009 tax form   You can find a selection of forms, publications and services — in-person. 1040ez 2009 tax form Products. 1040ez 2009 tax form You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040ez 2009 tax form Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 1040ez 2009 tax form Services. 1040ez 2009 tax form You can walk in to your local TAC for face-to-face tax help. 1040ez 2009 tax form An employee can answer questions about your tax account or help you set up a payment plan. 1040ez 2009 tax form Before visiting, use the Office Locator tool on IRS. 1040ez 2009 tax form gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 1040ez 2009 tax form Mail. 1040ez 2009 tax form   You can send your order for forms, instructions, and publications to the address below. 1040ez 2009 tax form You should receive a response within 10 business days after your request is received. 1040ez 2009 tax form Internal Revenue Service 1201 N. 1040ez 2009 tax form Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 1040ez 2009 tax form The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040ez 2009 tax form Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 1040ez 2009 tax form   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 1040ez 2009 tax form We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 1040ez 2009 tax form You face (or your business is facing) an immediate threat of adverse action. 1040ez 2009 tax form You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 1040ez 2009 tax form   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 1040ez 2009 tax form Here's why we can help: TAS is an independent organization within the IRS. 1040ez 2009 tax form Our advocates know how to work with the IRS. 1040ez 2009 tax form Our services are free and tailored to meet your needs. 1040ez 2009 tax form We have offices in every state, the District of Columbia, and Puerto Rico. 1040ez 2009 tax form   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. 1040ez 2009 tax form irs. 1040ez 2009 tax form gov/Advocate, or call us toll-free at 1-877-777-4778. 1040ez 2009 tax form   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 1040ez 2009 tax form If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 1040ez 2009 tax form Low Income Taxpayer Clinics. 1040ez 2009 tax form   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. 1040ez 2009 tax form Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 1040ez 2009 tax form Visit www. 1040ez 2009 tax form irs. 1040ez 2009 tax form gov/Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. 1040ez 2009 tax form Prev  Up  Next   Home   More Online Publications