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Form 1040x Instructions

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Form 1040x Instructions

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

Tax Information for Federal, State, & Local Governments
Federal, State and Local Governments facilitates cooperation through partnerships with federal, state, and local government agencies for the purpose of meeting their federal tax responsibilities, with a focus on customer service and fairness to all.

Tax Information for Indian Tribal Governments
Indian Tribal Governments (ITG) uses partnership opportunities with Indian tribal governments, tribal associations and other federal agencies to respectfully and cooperatively meet the needs of both governments.

Information for the Tax Exempt Bond Community
Tax Exempt Bonds (TEB) provides specialized information and services to the municipal finance community, including tailored educational programs which focus on bond industry segments; pro-active education and outreach products which address non-compliance trends; and compliance programs devised to foster voluntary resolution of tax law infractions.

Partnering Opportunities for Federal, State & Local Governments
The Office of Governmental Liaison (GL) is responsible for developing and implementing cooperative tax administration initiatives between the IRS and federal, state, and local governments. Each state has an assigned GL to serve as the primary liaison for the GL program.

Page Last Reviewed or Updated: 19-Mar-2014

The Form 1040x Instructions

Form 1040x instructions Publication 1212 - Introductory Material Table of Contents Future Developments Photographs of Missing Children IntroductionOrdering forms and publications. Form 1040x instructions Tax questions. Form 1040x instructions Useful Items - You may want to see: Future Developments For the latest information about developments related to Pub. Form 1040x instructions 1212, such as legislation enacted after it was published, go to www. Form 1040x instructions irs. Form 1040x instructions gov/pub1212. Form 1040x instructions Photographs of Missing Children The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Form 1040x instructions Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Form 1040x instructions You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Form 1040x instructions Introduction This publication has two purposes. Form 1040x instructions Its primary purpose is to help brokers and other middlemen identify publicly offered original issue discount (OID) debt instruments they may hold as nominees for the true owners, so they can file Forms 1099-OID or Forms 1099-INT as required. Form 1040x instructions The other purpose of the publication is to help owners of publicly offered OID debt instruments determine how much OID to report on their income tax returns. Form 1040x instructions The list of publicly offered OID debt instruments (OID list) is on the IRS website. Form 1040x instructions The original issue discount tables, Sections I-A through III-F, are only available on the IRS website at www. Form 1040x instructions irs. Form 1040x instructions gov/pub1212 by clicking the link under Recent Developments. Form 1040x instructions The tables are posted to the website in late November or early December of each year. Form 1040x instructions The information on these lists come from the issuers of the debt instruments and from financial publications and is updated annually. Form 1040x instructions (However, see Debt Instruments Not on the OID List, later. Form 1040x instructions ) Brokers and other middlemen can rely on this list to determine, for information reporting purposes, whether a debt instrument was issued at a discount and the OID to be reported on information returns. Form 1040x instructions However, because the information in the list has generally not been verified by the IRS as correct, the following tax matters are subject to change upon examination by the IRS. Form 1040x instructions The OID reported by owners of a debt instrument on their income tax returns. Form 1040x instructions The issuer's classification of an instrument as debt for federal income tax purposes. Form 1040x instructions Instructions for issuers of OID debt instruments. Form 1040x instructions   In general, issuers of publicly offered OID debt instruments must, within 30 days after the issue date, report information about the instruments to the IRS on Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. Form 1040x instructions See the form instructions for more information. Form 1040x instructions Issuers should report errors in and omissions from the list in writing at the following address:  IRS OID Publication Project SE:W:CAR:MP:T  1111 Constitution Ave. Form 1040x instructions NW, IR-6526 Washington, D. Form 1040x instructions C. Form 1040x instructions 20224 REMIC and CDO information reporting requirements. Form 1040x instructions   Brokers and other middlemen must follow special information reporting requirements for real estate mortgage investment conduits (REMIC) regular, and collateralized debt obligations (CDO) interests. Form 1040x instructions The rules are explained in Publication 938, Real Estate Mortgage Investment Conduits (REMICs) Reporting Information (And Other Collateralized Debt Obligations (CDOs)). Form 1040x instructions   Holders of interests in REMICs and CDOs should see chapter 1 of Publication 550 for information on REMICs and CDOs. Form 1040x instructions Comments and suggestions. Form 1040x instructions   We welcome your comments about this publication and your suggestions for future editions. Form 1040x instructions   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Form 1040x instructions NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Form 1040x instructions Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Form 1040x instructions   You can send your comments from www. Form 1040x instructions irs. Form 1040x instructions gov/formspubs/. Form 1040x instructions Click on “More Information” and then on “Comment on Tax Forms and Publications. Form 1040x instructions ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Form 1040x instructions Ordering forms and publications. Form 1040x instructions   Visit www. Form 1040x instructions irs. Form 1040x instructions gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Form 1040x instructions Internal Revenue Service 1201 N. Form 1040x instructions Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Form 1040x instructions   If you have a tax question, check the information available on IRS. Form 1040x instructions gov or call 1-800-829-1040. Form 1040x instructions We cannot answer tax questions sent to any of the preceding addresses. Form 1040x instructions Useful Items - You may want to see: Publication 515 Withholding of Tax on Nonresident Aliens and Foreign Entities 550 Investment Income and Expenses 938 Real Estate Mortgage Investment Conduits (REMICs) Reporting Information (And Other Collateralized Debt Obligations (CDOs)). Form 1040x instructions Form (and Instructions) 1096 Annual Summary and Transmittal of U. Form 1040x instructions S. Form 1040x instructions Information Returns 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-INT Interest Income 1099-OID Original Issue Discount 8949 Sales and Other Dispositions of Capital Assets Schedule B (Form 1040A or 1040) Interest and Ordinary Dividends Schedule D (Form 1040) Capital Gains and Losses W-8 Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY See How To Get Tax Help near the end of this publication for information about getting publications and forms. Form 1040x instructions Prev  Up  Next   Home   More Online Publications