File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Help With 1040x First Time

1040 Us Individual Income Tax Return 2012State Taxes1040ez Form 20111040ez FormWhere Can I Do My Taxes For Free OnlineH&r BlocksIrs Gov Forms 1040xFree 1040ezHow Do I File A Tax Extension2013 State Income Tax FormsFiling 2012 Taxes For Free2012 Tax Forms1040a Or 1040ezFiling Amended Tax Return 2013Irs Free File 1040ezTax For StudentsIrs Tax Form 1040ezFiling 2007 Tax Return LateNeed Do 2011 TaxesIrsIrs Form 1040a Or 1040ez2012 Form 10402010 Tax Forms IrsH And R Block OnlineNeed To File 2012 Tax ReturnsAmended Tax Return InstructionsFiling Taxes Self Employed1040x Online1040ez Forms 20141040nr FormH&r Block 2011Federal Tax Form 1040Free State Tax E FilingH & R Block Com1040ez Instructions 2012Federal 1040xState Tax FormAmend 2011 TaxTaxwise SoftwareFile Taxes Online For Free

Help With 1040x First Time

Help with 1040x first time Index A Accrued leave payment Disability retirement and, Accrued leave payment. Help with 1040x first time Assistance (see Tax help) C Care Dependent care benefits, Dependent Care Benefits Child and dependent care expenses, Child and Dependent Care Credit Compensation for permanent loss or disfigurement, Other Payments Credit for the elderly or the disabled, Credit for the Elderly or the Disabled D Damages, physical injury or sickness, Other Payments Dependent care assistance, Dependent Care Benefits Disability Pensions, Disability Pensions Disability benefits, no-fault car insurance policy, Other Payments Disability pensions, Disability Pensions E Exclusion from income Employer-provided dependent care benefits, Exclusion or deduction. Help with 1040x first time F Form W-2 Dependent care benefits, Statement for employee. Help with 1040x first time Free tax services, Free help with your tax return. Help with 1040x first time H Help (see Tax help) I Impairment-related work expenses Definition, Impairment-related expenses defined. Help with 1040x first time Impairment–related work expenses, Impairment-Related Work Expenses Income, Income Compensation for permanent loss or disfigurement, Other Payments Dependent care assistance, Dependent Care Benefits Disability pensions, Disability Pensions Long-term care insurance, Long-Term Care Insurance Military and government disability pensions, Military and Government Disability Pensions No-fault car insurance policy disability benefits, Other Payments Physical injury or sickness damages, Other Payments Social security and railroad retirement benefits, Social Security and Railroad Retirement Benefits Supplemental security income (SSI) payments, Supplemental security income (SSI) payments. Help with 1040x first time VA disability benefits, VA disability benefits. Help with 1040x first time Welfare fund benefits, Other Payments Workers compensation, Other Payments Itemized deductions, Itemized Deductions Impairment-related work expenses, Impairment-Related Work Expenses Medical expenses, Medical Expenses L Long-term care insurance, Long-Term Care Insurance M Medical expenses, Medical Expenses Military and government disability pensions, Military and Government Disability Pensions N No-fault car insurance policy disability benefits, Other Payments P Pensions Disability pensions, Disability Pensions Physical injury or sickness damages, Other Payments Profit-sharing plan, Retirement and profit-sharing plans. Help with 1040x first time Publications (see Tax help) S Social security and railroad retirement benefits, Social Security and Railroad Retirement Benefits Supplemental security income (SSI) payments, Supplemental security income (SSI) payments. Help with 1040x first time T Tax credits, Tax Credits Child and dependent care credit, Child and Dependent Care Credit Credit for the elderly or the disabled, Credit for the Elderly or the Disabled Tax help, How To Get Tax Help TTY/TDD information, How To Get Tax Help V VA disability benefits, VA disability benefits. Help with 1040x first time W Welfare fund benefits, Other Payments Workers compensation, Other Payments Prev  Up     Home   More Online Publications
Print - Click this link to Print this page

Tax Information for Bond Professionals

IRS Revises Form for Tax-Exempt Bonds
IR-2005-12– The IRS today released a revised form used by municipalities and other issuers of tax-exempt bonds to make arbitrage related payments.

Circular 230 Tax Professionals
The Office of Professional Responsibility (OPR) establishes and enforces consistent standards of competence, integrity and conduct for tax professionals enrolled agents, attorneys, CPAs, and other individuals and groups covered by Circular 230.

Index of Applicable Federal Rates (AFRs)
Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates, or AFRs, are regularly published as Revenue Rulings. The Revenue Rulings containing current and recent-past AFRs are available here in Adobe PDF format.

TEB CPE Texts
A series of articles published by the Service as the Tax Exempt Bonds Continuing Professional Education Technical Instruction Program.

Page Last Reviewed or Updated: 19-Feb-2014

The Help With 1040x First Time

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