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Amending Tax Return Online

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Amending Tax Return Online

Amending tax return online 9. Amending tax return online   Worksheets Table of Contents When Should I Figure MAC?Checking the Previous Year's Contributions Available Worksheets Chapter 2 introduced you to the term maximum amount contributable (MAC). Amending tax return online Generally, your MAC is the lesser of your: Limit on annual additions (chapter 3), or Limit on elective deferrals (chapter 4). Amending tax return online The worksheets in this chapter can help you figure the cost of incidental life insurance, your includible compensation, your limit on annual additions, your limit on elective deferrals, your limit on catch-up contributions, and your MAC. Amending tax return online After completing the worksheets, you should maintain them with your 403(b) records for that year. Amending tax return online Do not attach them to your tax return. Amending tax return online At the end of the year or the beginning of the next year, you should compare your estimated compensation figures with your actual figures. Amending tax return online If your compensation is the same as, or more than, the projected amounts and the calculations are correct, then you should simply file these worksheets with your other tax records for the year. Amending tax return online If your compensation was lower than your estimated figures, you will need to check the amount contributed during the year to determine if contributions are more than your MAC. Amending tax return online When Should I Figure MAC? At the beginning of each year, you should figure your MAC using a conservative estimate of your compensation. Amending tax return online Should your income change during the year, you should refigure your MAC based on a revised conservative estimate. Amending tax return online By doing this, you will be able to determine if contributions to your 403(b) account should be increased or decreased for the year. Amending tax return online Checking the Previous Year's Contributions At the beginning of the following year, you should refigure your MAC based on your actual earned income. Amending tax return online At the end of the current year or the beginning of the next year, you should check your contributions to be sure you did not exceed your MAC. Amending tax return online This means refiguring your limit based on your actual compensation figures for the year. Amending tax return online This will allow you to determine if the amount contributed is more than the allowable amounts, and possibly avoid additional taxes. Amending tax return online Available Worksheets The following worksheets have been provided to help you figure your MAC. Amending tax return online Worksheet A. Amending tax return online Cost of Incidental Life Insurance. Amending tax return online Worksheet B. Amending tax return online Includible Compensation for Your Most Recent Year of Service Worksheet C. Amending tax return online Limit on Catch-Up Contributions. Amending tax return online ??? Worksheet 1. Amending tax return online Maximum Amount Contributable (MAC). Amending tax return online Worksheet A. Amending tax return online Cost of Incidental Life Insurance Note. Amending tax return online Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. Amending tax return online This amount will be used to figure includible compensation for your most recent year of service. Amending tax return online 1. Amending tax return online Enter the value of the contract (amount payable upon your death) 1. Amending tax return online   2. Amending tax return online Enter the cash value in the contract at the end of the year 2. Amending tax return online   3. Amending tax return online Subtract line 2 from line 1. Amending tax return online This is the value of your current life insurance protection 3. Amending tax return online   4. Amending tax return online Enter your age on your birthday nearest the beginning of the policy year 4. Amending tax return online   5. Amending tax return online Enter the 1-year term premium for $1,000 of life insurance based on your age. Amending tax return online (From Figure 3-1) 5. Amending tax return online   6. Amending tax return online Divide line 3 by $1,000 6. Amending tax return online   7. Amending tax return online Multiply line 6 by line 5. Amending tax return online This is the cost of your incidental life insurance 7. Amending tax return online   Worksheet B. Amending tax return online Includible Compensation for Your Most Recent Year of Service1 Note. Amending tax return online Use this worksheet to figure includible compensation for your most recent year of service. Amending tax return online 1. Amending tax return online Enter your includible wages from the employer maintaining your 403(b) account for your most recent year of service 1. Amending tax return online   2. Amending tax return online Enter elective deferrals excluded from your gross income for your most recent year of service2 2. Amending tax return online   3. Amending tax return online Enter amounts contributed or deferred by your employer under a cafeteria plan for your most recent year of service 3. Amending tax return online   4. Amending tax return online Enter amounts contributed or deferred by your employer according to your election to your 457 account (a nonqualified plan of a state or local government or of a tax-exempt organization) for your most recent year of service 4. Amending tax return online   5. Amending tax return online Enter pre-tax contributions (employer's contributions made on your behalf according to your election) to a qualified transportation fringe benefit plan for your most recent year of service 5. Amending tax return online   6. Amending tax return online Enter your foreign earned income exclusion for your most recent year of service 6. Amending tax return online   7. Amending tax return online Add lines 1, 2, 3, 4, 5, and 6 7. Amending tax return online   8. Amending tax return online Enter the cost of incidental life insurance that is part of your annuity contract for your most recent year of service 8. Amending tax return online   9. Amending tax return online Enter compensation that was both: Earned during your most recent year of service, and Earned while your employer was not qualified to maintain a 403(b) plan 9. Amending tax return online   10. Amending tax return online Add lines 8 and 9 10. Amending tax return online   11. Amending tax return online Subtract line 10 from line 7. Amending tax return online This is your includible compensation for your most recent year of service 11. Amending tax return online   1Use estimated amounts if figuring includible compensation before the end of the year. Amending tax return online  2Elective deferrals made to a designated Roth account are not excluded from your gross income and should not be included on this line. Amending tax return online Worksheet C. Amending tax return online Limit on Catch-Up Contributions Note. Amending tax return online If you will be age 50 or older by the end of the year, use this worksheet to figure your limit on catch-up contributions. Amending tax return online 1. Amending tax return online Maximum catch-up contributions 1. Amending tax return online $5,500 2. Amending tax return online Enter your includible compensation for your most recent year of service 2. Amending tax return online   3. Amending tax return online Enter your elective deferrals 3. Amending tax return online   4. Amending tax return online Subtract line 3 from line 2 4. Amending tax return online   5. Amending tax return online Enter the lesser of line 1 or line 4. Amending tax return online This is your limit on catch-up contributions 5. Amending tax return online   Worksheet 1. Amending tax return online Maximum Amount Contributable (MAC) Note. Amending tax return online Use this worksheet to figure your MAC. Amending tax return online Part I. Amending tax return online Limit on Annual Additions     1. Amending tax return online Enter your includible compensation for your most recent year of service 1. Amending tax return online   2. Amending tax return online Maximum1: For 2013, enter $51,000 For 2014, enter $52,000 2. Amending tax return online   3. Amending tax return online Enter the lesser of line 1 or line 2. Amending tax return online This is your limit on annual additions 3. Amending tax return online     Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 on line 18. Amending tax return online     Part II. Amending tax return online Limit on Elective Deferrals     4. Amending tax return online Maximum contribution: For 2013, enter $17,500 For 2014, enter $17,500 4. Amending tax return online     Note. Amending tax return online If you have at least 15 years of service with a qualifying organization, complete lines 5 through 17. Amending tax return online If not, enter zero (-0-) on line 16 and go to line 17. Amending tax return online     5. Amending tax return online Amount per year of service 5. Amending tax return online $ 5,000 6. Amending tax return online Enter your years of service 6. Amending tax return online   7. Amending tax return online Multiply line 5 by line 6 7. Amending tax return online   8. Amending tax return online Enter the total of all elective deferrals made for you by the qualifying organization for prior years 8. Amending tax return online   9. Amending tax return online Subtract line 8 from line 7. Amending tax return online If zero or less, enter zero (-0-) 9. Amending tax return online   10. Amending tax return online Maximum increase in limit for long service 10. Amending tax return online $15,000 11. Amending tax return online Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule 11. Amending tax return online   12. Amending tax return online Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule 12. Amending tax return online   13. Amending tax return online Add line 11 and line 12 13. Amending tax return online   14. Amending tax return online Subtract line 13 from line 10 14. Amending tax return online   15. Amending tax return online Maximum additional contributions 15. Amending tax return online $ 3,000 16. Amending tax return online Enter the least of lines 9, 14, or 15. Amending tax return online This is your increase in the limit for long service 16. Amending tax return online   17. Amending tax return online Add lines 4 and 16. Amending tax return online This is your limit on elective deferrals 17. Amending tax return online     Part III. Amending tax return online Maximum Amount Contributable     18. Amending tax return online If you had only nonelective contributions, enter the amount from line 3. Amending tax return online This is your MAC. Amending tax return online    If you had only elective deferrals, enter the lesser of lines 3 or 17. Amending tax return online This is your MAC. Amending tax return online    If you had both elective deferrals and nonelective contributions, enter the amount from line 3. Amending tax return online This is your MAC. Amending tax return online (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7. Amending tax return online ) 18. Amending tax return online   1If you participate in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pension plans of all corporations, partnerships, and sole proprietorships in which you have more than 50% control. Amending tax return online You must also combine the contributions made to all 403(b) accounts on your behalf by your employer. Amending tax return online Prev  Up  Next   Home   More Online Publications
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The Amending Tax Return Online

Amending tax return online 25. Amending tax return online   Nonbusiness Casualty and Theft Losses Table of Contents What's New Introduction Useful Items - You may want to see: CasualtyFamily pet. Amending tax return online Progressive deterioration. Amending tax return online Damage from corrosive drywall. Amending tax return online Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses What's New New Section C of Form 4684 for Ponzi-type investment schemes. Amending tax return online  Section C of Form 4684 is new for 2013. Amending tax return online You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. Amending tax return online Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Amending tax return online You do not need to complete Appendix A. Amending tax return online For details, see Losses from Ponzi-type investment schemes , in this chapter. Amending tax return online Introduction This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits. Amending tax return online The chapter also explains the following  topics. Amending tax return online How to figure the amount of your loss. Amending tax return online How to treat insurance and other reimbursements you receive. Amending tax return online The deduction limits. Amending tax return online When and how to report a casualty or theft. Amending tax return online Forms to file. Amending tax return online    When you have a casualty or theft, you have to file Form 4684. Amending tax return online You will also have to file one or more of the following forms. Amending tax return online Schedule A (Form 1040), Itemized Deductions Schedule D (Form 1040), Capital Gains and Losses Condemnations. Amending tax return online   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets. Amending tax return online Workbook for casualties and thefts. Amending tax return online    Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. Amending tax return online It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. Amending tax return online Business or investment-related losses. Amending tax return online   For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts. Amending tax return online Useful Items - You may want to see: Publication 544 Sales and Other Dispositions  of Assets 547 Casualties, Disasters, and   Thefts 584 Casualty, Disaster, and Theft   Loss Workbook (Personal-Use  Property) Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Amending tax return online A sudden event is one that is swift, not gradual or progressive. Amending tax return online An unexpected event is one that is ordinarily unanticipated and unintended. Amending tax return online 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. Amending tax return online Deductible losses. Amending tax return online   Deductible casualty losses can result from a number of different causes, including the following. Amending tax return online Car accidents (but see Nondeductible losses , next, for exceptions). Amending tax return online Earthquakes. Amending tax return online Fires (but see Nondeductible losses , next, for exceptions). Amending tax return online Floods. Amending tax return online Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Publication 547. Amending tax return online Mine cave-ins. Amending tax return online Shipwrecks. Amending tax return online Sonic booms. Amending tax return online Storms, including hurricanes and tornadoes. Amending tax return online Terrorist attacks. Amending tax return online Vandalism. Amending tax return online Volcanic eruptions. Amending tax return online Nondeductible losses. Amending tax return online   A casualty loss is not deductible if the damage or destruction is caused by the following. Amending tax return online Accidentally breaking articles such as glassware or china under normal conditions. Amending tax return online A family pet (explained below). Amending tax return online A fire if you willfully set it or pay someone else to set it. Amending tax return online A car accident if your willful negligence or willful act caused it. Amending tax return online The same is true if the willful act or willful negligence of someone acting for you caused the accident. Amending tax return online Progressive deterioration (explained later). Amending tax return online Family pet. Amending tax return online   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. Amending tax return online Example. Amending tax return online Your antique oriental rug was damaged by your new puppy before it was housebroken. Amending tax return online Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. Amending tax return online Progressive deterioration. Amending tax return online    Loss of property due to progressive deterioration is not deductible as a casualty loss. Amending tax return online This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. Amending tax return online The following are examples of damage due to progressive deterioration. Amending tax return online The steady weakening of a building due to normal wind and weather conditions. Amending tax return online The deterioration and damage to a water heater that bursts. Amending tax return online However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. Amending tax return online Most losses of property caused by droughts. Amending tax return online To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. Amending tax return online Termite or moth damage. Amending tax return online The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. Amending tax return online However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. Amending tax return online Damage from corrosive drywall. Amending tax return online   Under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. Amending tax return online For details, see Publication 547. Amending tax return online Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. Amending tax return online The taking of property must be illegal under the laws of the state where it occurred and it must have been done with criminal intent. Amending tax return online You do not need to show a conviction for theft. Amending tax return online Theft includes the taking of money or property by the following means. Amending tax return online Blackmail. Amending tax return online Burglary. Amending tax return online Embezzlement. Amending tax return online Extortion. Amending tax return online Kidnapping for ransom. Amending tax return online Larceny. Amending tax return online Robbery. Amending tax return online The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. Amending tax return online Decline in market value of stock. Amending tax return online   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. Amending tax return online 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. Amending tax return online You report a capital loss on Schedule D (Form 1040). Amending tax return online For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. Amending tax return online Mislaid or lost property. Amending tax return online   The simple disappearance of money or property is not a theft. Amending tax return online 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. Amending tax return online Sudden, unexpected, and unusual events are defined earlier. Amending tax return online Example. Amending tax return online A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Amending tax return online The diamond falls from the ring and is never found. Amending tax return online The loss of the diamond is a casualty. Amending tax return online Losses from Ponzi-type investment schemes. Amending tax return online   If you had a loss from a Ponzi-type investment scheme, see: Revenue Ruling 2009-9, 2009-14 I. Amending tax return online R. Amending tax return online B. Amending tax return online 735 (available at www. Amending tax return online irs. Amending tax return online gov/irb/2009-14_IRB/ar07. Amending tax return online html). Amending tax return online Revenue Procedure 2009-20, 2009-14 I. Amending tax return online R. Amending tax return online B. Amending tax return online 749 (available at www. Amending tax return online irs. Amending tax return online gov/irb/2009-14_IRB/ar11. Amending tax return online html). Amending tax return online Revenue Procedure 2011-58, 2011-50 I. Amending tax return online R. Amending tax return online B. Amending tax return online 849 (available at www. Amending tax return online irs. Amending tax return online gov/irb/2011-50_IRB/ar11. Amending tax return online html). Amending tax return online 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. Amending tax return online Skip lines 19 to 27. Amending tax return online Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Amending tax return online You do not need to complete Appendix A. Amending tax return online For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. Amending tax return online   If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. Amending tax return online Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Amending tax return online If you incurred this type of loss, you can choose one of the following ways to deduct the loss. Amending tax return online As a casualty loss. Amending tax return online As an ordinary loss. Amending tax return online As a nonbusiness bad debt. Amending tax return online Casualty loss or ordinary loss. Amending tax return online   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. Amending tax return online The choice is generally 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. Amending tax return online 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. Amending tax return online 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. Amending tax return online Once you make this choice, you cannot change it without permission from the Internal Revenue Service. Amending tax return online   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Amending tax return online The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. Amending tax return online Your loss is subject to the 2%-of-adjusted-gross-income limit. Amending tax return online You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. Amending tax return online Nonbusiness bad debt. Amending tax return online   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. Amending tax return online How to report. Amending tax return online   The kind of deduction you choose for your loss on deposits determines how you report your loss. Amending tax return online If you choose: Casualty loss — report it on Form 4684 first and then on Schedule A (Form 1040). Amending tax return online Ordinary loss — report it on Schedule A (Form 1040) as a miscellaneous itemized deduction. Amending tax return online Nonbusiness bad debt — report it on Form 8949 first and then on Schedule D (Form 1040). Amending tax return online More information. Amending tax return online   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684 or Deposit in Insolvent or Bankrupt Financial Institution in Publication 550. Amending tax return online Proof of Loss To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. Amending tax return online You also must be able to support the amount you take as a deduction. Amending tax return online Casualty loss proof. Amending tax return online   For a casualty loss, your records should show all the following. Amending tax return online The type of casualty (car accident, fire, storm, etc. Amending tax return online ) and when it occurred. Amending tax return online That the loss was a direct result of the casualty. Amending tax return online 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. Amending tax return online Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Amending tax return online Theft loss proof. Amending tax return online   For a theft loss, your records should show all the following. Amending tax return online When you discovered that your property was missing. Amending tax return online That your property was stolen. Amending tax return online That you were the owner of the property. Amending tax return online Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. Amending tax return online It is important that you have records that will prove your deduction. Amending tax return online If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. Amending tax return online Figuring a Loss Figure the amount of your loss using the following steps. Amending tax return online Determine your adjusted basis in the property before the casualty or theft. Amending tax return online Determine the decrease in fair market value of the property as a result of the casualty or theft. Amending tax return online From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. Amending tax return online 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. Amending tax return online Gain from reimbursement. Amending tax return online   If your reimbursement is more than your adjusted basis in the property, you have a gain. Amending tax return online This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. Amending tax return online If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. Amending tax return online See Publication 547 for more information on how to treat a gain from a reimbursement for a casualty or theft. Amending tax return online Leased property. Amending tax return online   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. Amending tax return online 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. Amending tax return online 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. Amending tax return online FMV of stolen property. Amending tax return online   The FMV of property immediately after a theft is considered to be zero, since you no longer have the property. Amending tax return online Example. Amending tax return online Several years ago, you purchased silver dollars at face value for $150. Amending tax return online This is your adjusted basis in the property. Amending tax return online Your silver dollars were stolen this year. Amending tax return online The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. Amending tax return online Your theft loss is $150. Amending tax return online Recovered stolen property. Amending tax return online   Recovered stolen property is your property that was stolen and later returned to you. Amending tax return online 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. Amending tax return online Use this amount to refigure your total loss for the year in which the loss was deducted. Amending tax return online   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. Amending tax return online But report the difference only up to the amount of the loss that reduced your tax. Amending tax return online For more information on the amount to report, see Recoveries in chapter 12. Amending tax return online 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. Amending tax return online However, other measures can also be used to establish certain decreases. Amending tax return online Appraisal. Amending tax return online   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. Amending tax return online The appraiser must recognize the effects of any general market decline that may occur along with the casualty. Amending tax return online This information is needed to limit any deduction to the actual loss resulting from damage to the property. Amending tax return online   Several factors are important in evaluating the accuracy of an appraisal, including the following. Amending tax return online The appraiser's familiarity with your property before and after the casualty or theft. Amending tax return online The appraiser's knowledge of sales of comparable property in the area. Amending tax return online The appraiser's knowledge of conditions in the area of the casualty. Amending tax return online The appraiser's method of appraisal. Amending tax return online    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. Amending tax return online For more information on disasters, see Disaster Area Losses, in Pub. Amending tax return online 547. Amending tax return online Cost of cleaning up or making repairs. Amending tax return online   The cost of repairing damaged property is not part of a casualty loss. Amending tax return online Neither is the cost of cleaning up after a casualty. Amending tax return online But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. Amending tax return online The repairs are actually made. Amending tax return online The repairs are necessary to bring the property back to its condition before the casualty. Amending tax return online The amount spent for repairs is not excessive. Amending tax return online The repairs take care of the damage only. Amending tax return online The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. Amending tax return online Landscaping. Amending tax return online   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. Amending tax return online You may be able to measure your loss by what you spend on the following. Amending tax return online Removing destroyed or damaged trees and shrubs minus any salvage you receive. Amending tax return online Pruning and other measures taken to preserve damaged trees and shrubs. Amending tax return online Replanting necessary to restore the property to its approximate value before the casualty. Amending tax return online Car value. Amending tax return online    Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. Amending tax return online You can use the book's retail values and modify them by such factors as mileage and the condition of your car to figure its value. Amending tax return online 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. Amending tax return online If your car is not listed in the books, determine its value from other sources. Amending tax return online A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. Amending tax return online 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. Amending tax return online Cost of protection. Amending tax return online   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. Amending tax return online The amount you spend on insurance or to board up your house against a storm is not part of your loss. Amending tax return online   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. Amending tax return online An example would be the cost of a dike to prevent flooding. Amending tax return online Exception. Amending tax return online   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. Amending tax return online See Disaster Area Losses in Publication 547. Amending tax return online Incidental expenses. Amending tax return online   Any incidental expenses you have 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. Amending tax return online Replacement cost. Amending tax return online   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. Amending tax return online Sentimental value. Amending tax return online   Do not consider sentimental value when determining your loss. Amending tax return online 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. Amending tax return online Decline in market value of property in or near casualty area. Amending tax return online   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. Amending tax return online You have a loss only for actual casualty damage to your property. Amending tax return online However, if your home is in a federally declared disaster area, see Disaster Area Losses in Publication 547. Amending tax return online Costs of photographs and appraisals. Amending tax return online    Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. Amending tax return online Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. Amending tax return online    Appraisals are used to figure the decrease in FMV because of a casualty or theft. Amending tax return online See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. Amending tax return online   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. Amending tax return online You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). Amending tax return online For information about miscellaneous deductions, see chapter 28. Amending tax return online Adjusted Basis Adjusted basis is your basis in the property (usually cost) increased or decreased by various events, such as improvements and casualty losses. Amending tax return online For more information, see chapter 13. Amending tax return online Insurance and Other Reimbursements If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. Amending tax return online You do not have a casualty or theft loss to the extent you are reimbursed. Amending tax return online If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. Amending tax return online You must reduce your loss even if you do not receive payment until a later tax year. Amending tax return online See Reimbursement Received After Deducting Loss , later. Amending tax return online Failure to file a claim for reimbursement. Amending tax return online   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. Amending tax return online Otherwise, you cannot deduct this loss as a casualty or theft loss. Amending tax return online However, this rule does not apply to the portion of the loss not covered by insurance (for example, a deductible). Amending tax return online Example. Amending tax return online You have a car insurance policy with a $1,000 deductible. Amending tax return online Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the deduction limits discussed later). Amending tax return online This is true even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. Amending tax return online Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. Amending tax return online Other types of reimbursements are discussed next. Amending tax return online Also see the Instructions for Form 4684. Amending tax return online Employer's emergency disaster fund. Amending tax return online   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. Amending tax return online Take into consideration only the amount you used to replace your destroyed or damaged property. Amending tax return online Example. Amending tax return online Your home was extensively damaged by a tornado. Amending tax return online Your loss after reimbursement from your insurance company was $10,000. Amending tax return online Your employer set up a disaster relief fund for its employees. Amending tax return online Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. Amending tax return online You received $4,000 from the fund and spent the entire amount on repairs to your home. Amending tax return online In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. Amending tax return online Your casualty loss before applying the deduction limits discussed later is $6,000. Amending tax return online Cash gifts. Amending tax return online   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. Amending tax return online This applies even if you use the money to pay for repairs to property damaged in the disaster. Amending tax return online Example. Amending tax return online Your home was damaged by a hurricane. Amending tax return online Relatives and neighbors made cash gifts to you that were excludable from your income. Amending tax return online You used part of the cash gifts to pay for repairs to your home. Amending tax return online There were no limits or restrictions on how you could use the cash gifts. Amending tax return online Because it was an excludable gift, the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. Amending tax return online Insurance payments for living expenses. Amending tax return online   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. Amending tax return online You lose the use of your main home because of a casualty. Amending tax return online Government authorities do not allow you access to your main home because of a casualty or threat of one. Amending tax return online Inclusion in income. Amending tax return online   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. Amending tax return online Report this amount on Form 1040, line 21. Amending tax return online However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. Amending tax return online See Qualified disaster relief payments, under Disaster Area Losses in Publication 547. Amending tax return online   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. Amending tax return online Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. Amending tax return online Generally, these expenses include the amounts you pay for the following. Amending tax return online Rent for suitable housing. Amending tax return online Transportation. Amending tax return online Food. Amending tax return online Utilities. Amending tax return online Miscellaneous services. Amending tax return online 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. Amending tax return online Example. Amending tax return online As a result of a fire, you vacated your apartment for a month and moved to a motel. Amending tax return online You normally pay $525 a month for rent. Amending tax return online None was charged for the month the apartment was vacated. Amending tax return online Your motel rent for this month was $1,200. Amending tax return online You normally pay $200 a month for food. Amending tax return online Your food expenses for the month you lived in the motel were $400. Amending tax return online You received $1,100 from your insurance company to cover your living expenses. Amending tax return online You determine the payment you must include in income as follows. Amending tax return online 1) Insurance payment for living expenses $1,100 2) Actual expenses during the month you are unable to use your home because of fire 1,600   3) Normal living expenses 725   4) Temporary increase in living  expenses: Subtract line 3 from line 2 875 5) Amount of payment includible  in income: Subtract line 4  from line 1 $ 225 Tax year of inclusion. Amending tax return online   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. Amending tax return online Example. Amending tax return online Your main home was destroyed by a tornado in August 2011. Amending tax return online You regained use of your home in November 2012. Amending tax return online The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. Amending tax return online You include this amount in income on your 2012 Form 1040. Amending tax return online 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. Amending tax return online Disaster relief. Amending tax return online   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. Amending tax return online Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster are not taxable income to you. Amending tax return online For more information, see Disaster Area Losses in Publication 547. Amending tax return online Disaster unemployment assistance payments are unemployment benefits that are taxable. Amending tax return online Generally, disaster relief grants and qualified disaster mitigation payments made under the Robert T. Amending tax return online Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not includible in your income. Amending tax return online See Disaster Area Losses in Publication 547. Amending tax return online Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you receive your actual reimbursement. Amending tax return online This section explains the adjustment you may have to make. Amending tax return online Actual reimbursement less than expected. Amending tax return online   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. Amending tax return online Example. Amending tax return online Your personal car had an FMV of $2,000 when it was destroyed in a collision with another car in 2012. Amending tax return online The accident was due to the negligence of the other driver. Amending tax return online At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. Amending tax return online You did not have a deductible loss in 2012. Amending tax return online In January 2013, the court awarded you a judgment of $2,000. Amending tax return online However, in July it became apparent that you will be unable to collect any amount from the other driver. Amending tax return online You can deduct the loss in 2013 subject to the limits discussed later. Amending tax return online Actual reimbursement more than expected. Amending tax return online   If you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. Amending tax return online 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. Amending tax return online You do not refigure your tax for the year you claimed the deduction. Amending tax return online For more information, see Recoveries in chapter 12. Amending tax return online 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. Amending tax return online 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. Amending tax return online Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. Amending tax return online See Figuring a Gain in Publication 547 for more information on how to treat a gain from the reimbursement of a casualty or theft. Amending tax return online Actual reimbursement same as expected. Amending tax return online   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. Amending tax return online Example. Amending tax return online In December 2013, you had a collision while driving your personal car. Amending tax return online Repairs to the car cost $950. Amending tax return online You had $100 deductible collision insurance. Amending tax return online Your insurance company agreed to reimburse you for the rest of the damage. Amending tax return online Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. Amending tax return online Due to the $100 rule (discussed later under Deduction Limits ), you cannot deduct the $100 you paid as the deductible. Amending tax return online When you receive the $850 from the insurance company in 2014, do not report it as income. Amending tax return online Single Casualty on Multiple Properties Personal property. Amending tax return online   Personal property is any property that is not real property. Amending tax return online 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. Amending tax return online Then combine these separate losses to figure the total loss from that casualty or theft. Amending tax return online Example. Amending tax return online A fire in your home destroyed an upholstered chair, an oriental rug, and an antique table. Amending tax return online You did not have fire insurance to cover your loss. Amending tax return online (This was the only casualty or theft you had during the year. Amending tax return online ) You paid $750 for the chair and you established that it had an FMV of $500 just before the fire. Amending tax return online The rug cost $3,000 and had an FMV of $2,500 just before the fire. Amending tax return online You bought the table at an auction for $100 before discovering it was an antique. Amending tax return online It had been appraised at $900 before the fire. Amending tax return online You figure your loss on each of these items as follows:     Chair Rug Table 1) Basis (cost) $750 $3,000 $100 2) FMV before fire $500 $2,500 $900 3) FMV after fire –0– –0– –0– 4) Decrease in FMV $500 $2,500 $900 5) Loss (smaller of (1) or  (4)) $500 $2,500 $100           6) Total loss     $3,100 Real property. Amending tax return online   In figuring a casualty loss on personal-use real property, treat the entire property (including any improvements, such as buildings, trees, and shrubs) as one item. Amending tax return online Figure the loss using the smaller of the adjusted basis or the decrease in FMV of the entire property. Amending tax return online Example. Amending tax return online You bought your home a few years ago. Amending tax return online You paid $160,000 ($20,000 for the land and $140,000 for the house). Amending tax return online You also spent $2,000 for landscaping. Amending tax return online This year a fire destroyed your home. Amending tax return online The fire also damaged the shrubbery and trees in your yard. Amending tax return online The fire was your only casualty or theft loss this year. Amending tax return online Competent appraisers valued the property as a whole at $200,000 before the fire, but only $30,000 after the fire. Amending tax return online (The loss to your household furnishings is not shown in this example. Amending tax return online It would be figured separately on each item, as explained earlier under Personal property . Amending tax return online ) Shortly after the fire, the insurance company paid you $155,000 for the loss. Amending tax return online You figure your casualty loss as follows: 1) Adjusted basis of the entire property (land, building, and landscaping) $162,000 2) FMV of entire property before fire $200,000 3) FMV of entire property after fire 30,000 4) Decrease in FMV of entire  property $170,000 5) Loss (smaller of (1) or (4)) $162,000 6) Subtract insurance 155,000 7) Amount of loss after reimbursement $7,000 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. Amending tax return online If the loss was to property for your personal use or your family's use, there are two limits on the amount you can deduct for your casualty or theft loss. Amending tax return online You must reduce each casualty or theft loss by $100 ($100 rule). Amending tax return online You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income (10% rule). Amending tax return online You make these reductions on Form 4684. Amending tax return online These rules are explained next and Table 25-1 summarizes how to apply the $100 rule and the 10% rule in various situations. Amending tax return online For more detailed explanations and examples, see Publication 547. Amending tax return online Table 25-1. Amending tax return online How To Apply the Deduction Limits for Personal-Use Property   $100 Rule 10% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. Amending tax return online Apply this rule after you have figured the amount of your loss. Amending tax return online You must reduce your total casualty or theft loss by 10% of your adjusted gross income. Amending tax return online Apply this rule after you reduce each loss by $100 (the $100 rule). Amending tax return online Single Event Apply this rule only once, even if many pieces of property are affected. Amending tax return online Apply this rule only once, even if many pieces of property are affected. Amending tax return online More Than One Event Apply to the loss from each event. Amending tax return online Apply to the total of all your losses from all events. Amending tax return online More Than One Person— With Loss From the Same Event (other than a married couple filing jointly) Apply separately to each person. Amending tax return online Apply separately to each person. Amending tax return online Married Couple—With Loss From the Same Event Filing Jointly Apply as if you were one person. Amending tax return online Apply as if you were one person. Amending tax return online Filing Separately Apply separately to each spouse. Amending tax return online Apply separately to each spouse. Amending tax return online More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. Amending tax return online Apply separately to each owner of jointly owned property. Amending tax return online Property used partly for business and partly for personal purposes. Amending tax return online   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 part and for the business or income-producing part. Amending tax return online You must figure each loss separately because the $100 rule and the 10% rule apply only to the loss on the personal-use part of the property. Amending tax return online $100 Rule After you have figured your casualty or theft loss on personal-use property, you must reduce that loss by $100. Amending tax return online This reduction applies to each total casualty or theft loss. Amending tax return online It does not matter how many pieces of property are involved in an event. Amending tax return online Only a single $100 reduction applies. Amending tax return online Example. Amending tax return online A hailstorm damages your home and your car. Amending tax return online Determine the amount of loss, as discussed earlier, for each of these items. Amending tax return online Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. Amending tax return online Single event. Amending tax return online   Generally, events closely related in origin cause a single casualty. Amending tax return online 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. Amending tax return online 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. Amending tax return online Apply this rule after you reduce each loss by $100. Amending tax return online For more information, see the Form 4684 instructions. Amending tax return online If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. Amending tax return online Example 1. Amending tax return online In June, you discovered that your house had been burglarized. Amending tax return online Your loss after insurance reimbursement was $2,000. Amending tax return online Your adjusted gross income for the year you discovered the theft is $29,500. Amending tax return online You first apply the $100 rule and then the 10% rule. Amending tax return online Figure your theft loss deduction as follows. Amending tax return online 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You do not have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your adjusted gross income ($2,950). Amending tax return online Example 2. Amending tax return online In March, you had a car accident that totally destroyed your car. Amending tax return online You did not have collision insurance on your car, so you did not receive any insurance reimbursement. Amending tax return online Your loss on the car was $1,800. Amending tax return online In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items stored there. Amending tax return online Your loss on the basement items after reimbursement was $2,100. Amending tax return online Your adjusted gross income for the year that the accident and fire occurred is $25,000. Amending tax return online You figure your casualty loss deduction as follows. Amending tax return online       Base-     Car ment 1) Loss $1,800 $2,100 2) Subtract $100 per incident 100 100 3) Loss after $100 rule $1,700 $2,000 4) Total loss $3,700 5) Subtract 10% × $25,000 AGI 2,500 6) Casualty loss deduction $1,200 Gains and losses. Amending tax return online   If you had both gains and losses from casualties or thefts to personal-use property, you must compare your total gains to your total losses. Amending tax return online 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. Amending tax return online Casualty or theft gains do not include gains you choose to postpone. Amending tax return online See Publication 547 for information on the postponement of gain. Amending tax return online Losses more than gains. Amending tax return online   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. Amending tax return online The rest, if any, is your deductible loss from personal-use property. Amending tax return online Gains more than losses. Amending tax return online   If your recognized gains are more than your losses, subtract your losses from your gains. Amending tax return online The difference is treated as capital gain and must be reported on Schedule D (Form 1040). Amending tax return online The 10% rule does not apply to your gains. Amending tax return online When To Report Gains and Losses Gains. Amending tax return online   If you receive an insurance or other reimbursement that is more than your adjusted basis in the destroyed or stolen property, you have a gain from the casualty or theft. Amending tax return online You must include this gain in your income in the year you receive the reimbursement, unless you choose to postpone reporting the gain as explained in Publication 547. Amending tax return online If you have a loss, see Table 25-2 . Amending tax return online Table 25-2. Amending tax return online When To Deduct a Loss IF you have a loss. Amending tax return online . Amending tax return online . Amending tax return online THEN deduct it in the year. Amending tax return online . Amending tax return online . Amending tax return online from a casualty, the loss occurred. Amending tax return online in a federally declared disaster area, the disaster occurred or the year immediately before the disaster. Amending tax return online from a theft, the theft was discovered. Amending tax return online on a deposit treated as a:   • casualty or any ordinary loss, a reasonable estimate can be made. Amending tax return online • bad debt, deposits are totally worthless. Amending tax return online Losses. Amending tax return online   Generally, you can deduct a casualty loss that is not reimbursable only in the tax year in which the casualty occurred. Amending tax return online This is true even if you do not repair or replace the damaged property until a later year. Amending tax return online   You can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. Amending tax return online   If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. Amending tax return online Loss on deposits. Amending tax return online   If your loss is a loss on deposits in an insolvent or bankrupt financial institution, see Loss on Deposits , earlier. Amending tax return online Disaster Area Loss You generally must deduct a casualty loss in the year it occurred. Amending tax return online However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct the loss on your tax return or amended return for either of the following years. Amending tax return online The year the disaster occurred. Amending tax return online The year immediately preceding the year the disaster occurred. Amending tax return online Gains. Amending tax return online    Special rules apply if you choose to postpone reporting gain on property damaged or destroyed in a federally declared disaster area. Amending tax return online For those special rules, see Publication 547. Amending tax return online Postponed tax deadlines. Amending tax return online   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. Amending tax return online The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Amending tax return online   If any tax deadline is postponed, the IRS will publicize the postponement in your area by publishing a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Amending tax return online Go to www. Amending tax return online irs. Amending tax return online gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. Amending tax return online Who is eligible. Amending tax return online   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Amending tax return online Any individual whose main home is located in a covered disaster area (defined next). Amending tax return online Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Amending tax return online Any individual who is a relief worker affiliated with a recognized government or philanthropic organization who is assisting in a covered disaster area. Amending tax return online Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Amending tax return online The main home or principal place of business does not have to be located in the covered disaster area. Amending tax return online Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. Amending tax return online The spouse on a joint return with a taxpayer who is eligible for postponements. Amending tax return online Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a postponed tax deadline are located in the covered disaster area. Amending tax return online Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. Amending tax return online Any other person determined by the IRS to be affected by a federally declared disaster. Amending tax return online Covered disaster area. Amending tax return online   This is an area of a federally declared disaster in which the IRS has decided to postpone tax deadlines for up to 1 year. Amending tax return online Abatement of interest and penalties. Amending tax return online   The IRS may abate the interest and penalties on underpaid income tax for the length of any postponement of tax deadlines. Amending tax return online More information. Amending tax return online   For more information, see Disaster Area Losses in Publication 547. Amending tax return online How To Report Gains and Losses Use Form 4684 to report a gain or a deductible loss from a casualty or theft. Amending tax return online If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. Amending tax return online Combine the gains and losses on one Form 4684. Amending tax return online Follow the form instructions as to which lines to fill out. Amending tax return online In addition, you must use the appropriate schedule to report a gain or loss. Amending tax return online The schedule you use depends on whether you have a gain or loss. Amending tax return online If you have a: Report it on: Gain Schedule D (Form 1040) Loss Schedule A (Form 1040) Adjustments to basis. Amending tax return online   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. Amending tax return online Amounts you spend to restore your property after a casualty increase your adjusted basis. Amending tax return online See Adjusted Basis in chapter 13 for more information. Amending tax return online Net operating loss (NOL). Amending tax return online    If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. Amending tax return online You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. Amending tax return online Or, you can use it to lower your tax in a later year. Amending tax return online You do not have to be in business to have an NOL from a casualty or theft loss. Amending tax return online For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. Amending tax return online Prev  Up  Next   Home   More Online Publications