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How Do I File A Tax Extension For Free

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How Do I File A Tax Extension For Free

How do i file a tax extension for free Index Symbols "Hours of service" limits, Individuals subject to hours of service limits. How do i file a tax extension for free Form 2106, Hours of service limits. How do i file a tax extension for free 50% limit on meals, 50% limit on meals. How do i file a tax extension for free A Accountable plans, Accountable Plans, Per diem allowance more than federal rate. How do i file a tax extension for free Accounting to employer, Accountable Plans Adequate accounting, Adequate Accounting Independent contractors, Adequate accounting. How do i file a tax extension for free Adequate records, What Are Adequate Records? Advertising Car display, Advertising display on car. How do i file a tax extension for free Expenses, 3 - Advertising expenses. How do i file a tax extension for free Signs, display racks, or other promotional material to be used on recipient's business premises, Exceptions. How do i file a tax extension for free Airline clubs, Club dues and membership fees. How do i file a tax extension for free Allocating costs, Separating costs. How do i file a tax extension for free , Separating costs. How do i file a tax extension for free , Allocating between business and nonbusiness. How do i file a tax extension for free , Allocating total cost. How do i file a tax extension for free Allowance (see Reimbursements) Armed forces Assigned overseas, Members of the Armed Forces. How do i file a tax extension for free Assistance (see Tax help) Associated entertainment, Associated Test Athletic clubs, Club dues and membership fees. How do i file a tax extension for free B Basis of car, Basis. How do i file a tax extension for free (see also Depreciation of car) Bona fide business purpose, Bona fide business purpose. How do i file a tax extension for free Box seats at entertainment events, Skyboxes and other private luxury boxes. How do i file a tax extension for free Business travel, Trip Primarily for Business Outside U. How do i file a tax extension for free S. How do i file a tax extension for free , Travel Entirely for Business or Considered Entirely for Business Business use of car, Business and personal use. How do i file a tax extension for free More-than-50%-use test. How do i file a tax extension for free , More-than-50%-use test. How do i file a tax extension for free Qualified business use, Qualified business use. How do i file a tax extension for free C Canceled checks As evidence of business expenses, Canceled check. How do i file a tax extension for free Car expenses, Car Expenses, Reporting inclusion amounts. How do i file a tax extension for free Actual expenses, Actual Car Expenses Allowances for, Per Diem and Car Allowances, Allowance more than the federal rate. How do i file a tax extension for free Business and personal use, Business and personal use. How do i file a tax extension for free Combining expenses, Car expenses. How do i file a tax extension for free Disposition of car, Disposition of a Car Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR). How do i file a tax extension for free Form 2106, Car expenses. How do i file a tax extension for free Leasing a car, truck, or van, Leasing a Car, Reporting inclusion amounts. How do i file a tax extension for free Mileage rate (see Standard mileage rate) Taxes paid on car, Taxes paid on your car. How do i file a tax extension for free Traffic tickets, Fines and collateral. How do i file a tax extension for free Car pools, Car pools. How do i file a tax extension for free Car rentals, Reporting inclusion amounts. How do i file a tax extension for free Form 2106, Car rentals. How do i file a tax extension for free Car, defined, Car defined. How do i file a tax extension for free Car, truck, or van rentals, Leasing a Car, Reporting inclusion amounts. How do i file a tax extension for free Casualty and theft losses Cars, Casualty and theft losses. How do i file a tax extension for free Depreciation, Casualty or theft. How do i file a tax extension for free Charitable organizations Benefit events for, Exception for events that benefit charitable organizations. How do i file a tax extension for free Sports events to benefit, 5 - Charitable sports event. How do i file a tax extension for free Club dues, Club dues and membership fees. How do i file a tax extension for free Commuting expenses, Commuting expenses. How do i file a tax extension for free Conventions, Conventions, Meetings at conventions. How do i file a tax extension for free Country clubs, Club dues and membership fees. How do i file a tax extension for free Cruise ships, Cruise Ships D Daily business mileage and expense log (Table 6-2), Table 5-2. How do i file a tax extension for free Daily Business Mileage and Expense Log Name: Depreciation of car, Depreciation and section 179 deductions. How do i file a tax extension for free (see also Section 179 deductions) Adjustment for using standard mileage rate, Depreciation adjustment when you used the standard mileage rate. How do i file a tax extension for free Basis, Basis. How do i file a tax extension for free Sales taxes, Sales taxes. How do i file a tax extension for free Unrecovered basis, How to treat unrecovered basis. How do i file a tax extension for free Casualty or theft, effect, Casualty or theft. How do i file a tax extension for free Deduction, Depreciation and section 179 deductions. How do i file a tax extension for free , Depreciation deduction for the year of disposition. How do i file a tax extension for free Excess depreciation, Excess depreciation. How do i file a tax extension for free Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS). How do i file a tax extension for free Trade-in, effect, Car trade-in. How do i file a tax extension for free , Trade-in. How do i file a tax extension for free Trucks and vans, Trucks and vans. How do i file a tax extension for free Depreciation of Car Section 179 deduction, Section 179 deduction. How do i file a tax extension for free Directly-related entertainment, Directly-Related Test Disabled employees Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees Documentary evidence, Documentary evidence. How do i file a tax extension for free E Employer-provided vehicles, Employer-provided vehicle. How do i file a tax extension for free Reporting requirements, Vehicle Provided by Your Employer Entertainment expenses, Entertainment, Individuals subject to hours of service limits. How do i file a tax extension for free , Gift or entertainment. How do i file a tax extension for free 50% limit, Directly before or after business discussion. How do i file a tax extension for free Determination of applicability (Figure A), 50% Limit Associated test, Associated Test Deductible, What Entertainment Expenses Are Deductible?, Expenses for spouses. How do i file a tax extension for free Summary (Table 2-1), Exception for events that benefit charitable organizations. How do i file a tax extension for free Directly-related test, Directly-Related Test Entertainment, defined, Entertainment. How do i file a tax extension for free Form 2106, Meal and entertainment expenses. How do i file a tax extension for free Tickets (see Tickets) Entertainment facilities Expenses for use of, Entertainment facilities. How do i file a tax extension for free Estimates of expenses, How To Prove Expenses Exceptions to the 50% Limit, Exceptions to the 50% Limit Excess reimbursements (see Reimbursements) Extravagant expenses, Lavish or extravagant. How do i file a tax extension for free , Lavish or extravagant expenses. How do i file a tax extension for free F Fair market value of car, Fair market value. How do i file a tax extension for free Farmers Form 1040, Schedule F, Self-employed. How do i file a tax extension for free Federal crime investigations or prosecutions Federal employees engaged in, Exception for federal crime investigations or prosecutions. How do i file a tax extension for free Federal rate for per diem, Standard Meal Allowance, The federal rate. How do i file a tax extension for free Fee-basis officials, Officials Paid on a Fee Basis Fees you pay, Parking fees. How do i file a tax extension for free Fixed and variable rate (FAVR) allowance, Fixed and variable rate (FAVR). How do i file a tax extension for free Form 1040, Schedule C, Self-employed. How do i file a tax extension for free Form 1040, Schedule F, Self-employed. How do i file a tax extension for free Form 2106, How to choose. How do i file a tax extension for free , Employees. How do i file a tax extension for free , Full value included in your income. How do i file a tax extension for free , Reporting your expenses under a nonaccountable plan. How do i file a tax extension for free , Completing Forms 2106 and 2106-EZ Form 2106-EZ, Form 2106-EZ. How do i file a tax extension for free Form 4562, Self-employed. How do i file a tax extension for free Form 4797, Excess depreciation. How do i file a tax extension for free Form W-2 Employer-provided vehicles, Value reported on Form W-2. How do i file a tax extension for free Reimbursement of personal expenses, Reimbursement for personal expenses. How do i file a tax extension for free Statutory employees, Statutory employees. How do i file a tax extension for free Free tax services, Free help with your tax return. How do i file a tax extension for free G Gifts, Gift or entertainment. How do i file a tax extension for free , Gifts $25 limit, $25 limit. How do i file a tax extension for free Combining for recordkeeping purposes, Gift expenses. How do i file a tax extension for free Reporting requirements, Gifts. How do i file a tax extension for free Golf clubs, Club dues and membership fees. How do i file a tax extension for free H Hauling tools, Hauling tools or instruments. How do i file a tax extension for free Help (see Tax help) High-low method Introduction, High-low method. How do i file a tax extension for free Transition rules, High-low method. How do i file a tax extension for free High-low rate method, High-low rate. How do i file a tax extension for free Home office, Office in the home. How do i file a tax extension for free Hotel clubs, Club dues and membership fees. How do i file a tax extension for free I Impairment-related work expenses, Impairment-Related Work Expenses of Disabled Employees Incidental expenses Defined, Incidental expenses. How do i file a tax extension for free Gifts, Incidental costs. How do i file a tax extension for free No meals, incidentals only, Incidental-expenses-only method. How do i file a tax extension for free Income-producing property, Income-producing property. How do i file a tax extension for free Incomplete records, What If I Have Incomplete Records? Indefinite job assignment, Temporary assignment vs. How do i file a tax extension for free indefinite assignment. How do i file a tax extension for free Independent contractors, Rules for Independent Contractors and Clients Interest on car loans, Interest on car loans. How do i file a tax extension for free Itinerants, Tax Home L Lavish or extravagant expenses, Lavish or extravagant. How do i file a tax extension for free , Lavish or extravagant expenses. How do i file a tax extension for free Leasing a car, truck, or van, Leasing a Car, Reporting inclusion amounts. How do i file a tax extension for free Luxury private boxes at entertainment events, Skyboxes and other private luxury boxes. How do i file a tax extension for free Luxury water travel, Luxury Water Travel M MACRS (Modified Accelerated Cost Recovery System), Modified Accelerated Cost Recovery System (MACRS). How do i file a tax extension for free 2011 chart (Table 4-1), Table 4-1. How do i file a tax extension for free 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. How do i file a tax extension for free ) Main place of business or work, Main place of business or work. How do i file a tax extension for free Married taxpayers Performing artists, Special rules for married persons. How do i file a tax extension for free Meal expenses, Meals 50% limit, 50% Limit Determination of applicability (Figure A), 50% Limit Exceptions, Exceptions to the 50% Limit Actual cost method, Actual Cost Form 2106, Meal and entertainment expenses. How do i file a tax extension for free Major cities with higher allowances, Amount of standard meal allowance. How do i file a tax extension for free Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance. How do i file a tax extension for free , The standard meal allowance. How do i file a tax extension for free Meals, entertainment-related, A meal as a form of entertainment. How do i file a tax extension for free Mileage rate (see Standard mileage rate) Military (see Armed forces) Missing children, photographs of, Reminder Modified Accelerated Cost Recovery System (MACRS), Modified Accelerated Cost Recovery System (MACRS). How do i file a tax extension for free 2011 chart (Table 4-1), Table 4-1. How do i file a tax extension for free 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. How do i file a tax extension for free ) N Nonaccountable plans, Nonaccountable Plans O Office in the home, Office in the home. How do i file a tax extension for free Officials paid on fee basis, Officials Paid on a Fee Basis Overseas travel Conventions, Conventions Held Outside the North American Area Meal allowance, Standard meal allowance for areas outside the continental United States. How do i file a tax extension for free Part of trip outside U. How do i file a tax extension for free S. How do i file a tax extension for free , Part of Trip Outside the United States P Parking fees, Parking fees. How do i file a tax extension for free , Parking fees and tolls. How do i file a tax extension for free Per diem allowances, Per Diem and Car Allowances, Allowance more than the federal rate. How do i file a tax extension for free Defined, Reimbursement, allowance, or advance. How do i file a tax extension for free Federal rate for, The federal rate. How do i file a tax extension for free Per diem rates High-cost localities, High-low method. How do i file a tax extension for free High-low method, High-low method. How do i file a tax extension for free Regular federal method, Regular federal per diem rate method. How do i file a tax extension for free Standard rate for unlisted localities, High-low method. How do i file a tax extension for free , Regular federal per diem rate method. How do i file a tax extension for free Transition rules, High-low method. How do i file a tax extension for free , Federal per diem rate method. How do i file a tax extension for free Performing artists, Expenses of Certain Performing Artists Personal property taxes, Personal property taxes. How do i file a tax extension for free , Taxes paid on your car. How do i file a tax extension for free Personal trips, Trip Primarily for Personal Reasons Outside U. How do i file a tax extension for free S. How do i file a tax extension for free , Travel Primarily for Personal Reasons Placed in service, cars, Placed in service. How do i file a tax extension for free Probationary work period, Probationary work period. How do i file a tax extension for free Proving business purpose, Proving business purpose. How do i file a tax extension for free Public transportation Outside of U. How do i file a tax extension for free S. How do i file a tax extension for free travel, Public transportation. How do i file a tax extension for free Publications (see Tax help) R Recordkeeping requirements, Recordkeeping, Examples of Records Adequate records, What Are Adequate Records? Daily business mileage and expense log (Table 6-2), Table 5-2. How do i file a tax extension for free Daily Business Mileage and Expense Log Name: Destroyed records, Destroyed records. How do i file a tax extension for free How to prove expenses (Table 5-1), Table 5-1. How do i file a tax extension for free How To Prove Certain Business Expenses Incomplete records, What If I Have Incomplete Records? Reimbursed expenses, Reimbursed for expenses. How do i file a tax extension for free Sampling to prove expenses, Sampling. How do i file a tax extension for free Separating and combining expenses, Separating and Combining Expenses, If your return is examined. How do i file a tax extension for free Three-year period of retention, How Long To Keep Records and Receipts Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Regular federal method Introduction, Regular federal per diem rate method. How do i file a tax extension for free Transition rules, Federal per diem rate method. How do i file a tax extension for free Reimbursements, Less than full value included in your income. How do i file a tax extension for free , Contractor does not adequately account. How do i file a tax extension for free Accountable plans, Accountable Plans Excess, Returning Excess Reimbursements, Nonaccountable Plans Form 2106, Reimbursements. How do i file a tax extension for free Nonaccountable plans, Nonaccountable Plans Nondeductible expenses, Reimbursement of nondeductible expenses. How do i file a tax extension for free Personal expenses, Reimbursement for personal expenses. How do i file a tax extension for free Recordkeeping, Reimbursed for expenses. How do i file a tax extension for free Reporting (Table 6-1), Table 6-1. How do i file a tax extension for free Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements Unclaimed, Where To Report Reporting requirements, How To Report Per diem or car allowance, Reporting your expenses with a per diem or car allowance. How do i file a tax extension for free Reimbursements, Reimbursements, Contractor does not adequately account. How do i file a tax extension for free Reservists Transportation expenses, Armed Forces reservists. How do i file a tax extension for free Traveling more than 100 miles from home, Armed Forces Reservists Traveling More Than 100 Miles From Home Returning excess reimbursements, Returning Excess Reimbursements Rural mail carriers, Rural mail carriers. How do i file a tax extension for free S Section 179 deduction Amended return, How to choose. How do i file a tax extension for free Deduction, Section 179 Deduction Limits, Limits. How do i file a tax extension for free Self-employed persons, 2 - Self-employed. How do i file a tax extension for free Reporting requirements, Self-employed. How do i file a tax extension for free Skyboxes, Skyboxes and other private luxury boxes. How do i file a tax extension for free Spouse, expenses for, Travel expenses for another individual. How do i file a tax extension for free , Expenses for spouses. How do i file a tax extension for free Standard meal allowance, Standard Meal Allowance, Who can use the standard meal allowance. How do i file a tax extension for free , The standard meal allowance. How do i file a tax extension for free Standard mileage rate, What's New, Standard Mileage Rate, The standard mileage rate. How do i file a tax extension for free Depreciation adjustment for using, Depreciation adjustment when you used the standard mileage rate. How do i file a tax extension for free Form 2106, Standard mileage rate. How do i file a tax extension for free Statutory employees, Statutory employees. How do i file a tax extension for free T Tables and figures 50% limit determination (Figure A), 50% Limit Daily business mileage and expense log (Table 6-2), Table 5-2. How do i file a tax extension for free Daily Business Mileage and Expense Log Name: Entertainment expenses, determination of deductibility (Table 2-1), Table 2-1. How do i file a tax extension for free When Are Entertainment Expenses Deductible? Maximum depreciation deduction for cars table, Maximum Depreciation Deduction for Cars Modified Accelerated Cost Recovery System (MACRS) 2011 chart (Table 4-1), Table 4-1. How do i file a tax extension for free 2013 MACRS Depreciation Chart (Use to Figure Depreciation for 2013. How do i file a tax extension for free ) Proving expenses (Table 5-1), Table 5-1. How do i file a tax extension for free How To Prove Certain Business Expenses Reporting reimbursements (Table 6-1), Table 6-1. How do i file a tax extension for free Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements Transportation expenses, determination of deductibility (Figure B), Gift or entertainment. How do i file a tax extension for free , Illustration of transportation expenses. How do i file a tax extension for free Travel expenses, determination of deductibility (Table 1-1), Table 1-1. How do i file a tax extension for free Travel Expenses You Can Deduct Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Tax help, How To Get Tax Help Tax home, determination of, Tax Home Temporary job assignments, Temporary Assignment or Job Temporary work location, Temporary work location. How do i file a tax extension for free Tickets, Entertainment tickets. How do i file a tax extension for free , Gift or entertainment. How do i file a tax extension for free Season or series tickets, Season or series tickets. How do i file a tax extension for free Traffic violations, Fines and collateral. How do i file a tax extension for free Tools Hauling tools, Hauling tools or instruments. How do i file a tax extension for free Trade association meetings, Trade association meetings. How do i file a tax extension for free Trade-in of car, Car trade-in. How do i file a tax extension for free , Trade-in. How do i file a tax extension for free Traffic tickets, Fines and collateral. How do i file a tax extension for free Transients, Tax Home Transition rules, Transition Rules Example High-low method, High-low method. How do i file a tax extension for free High-low method, High-low method. How do i file a tax extension for free Regular federal method, Federal per diem rate method. How do i file a tax extension for free Transportation expenses, Transportation, Depreciation deduction for the year of disposition. How do i file a tax extension for free Car expenses, Car Expenses, Reporting inclusion amounts. How do i file a tax extension for free Deductible (Figure B), Gift or entertainment. How do i file a tax extension for free , Illustration of transportation expenses. How do i file a tax extension for free five or more cars, Five or more cars. How do i file a tax extension for free Form 2106, Transportation expenses. How do i file a tax extension for free Transportation workers, Special rate for transportation workers. How do i file a tax extension for free , Individuals subject to hours of service limits. How do i file a tax extension for free Travel advance, Reimbursement, allowance, or advance. How do i file a tax extension for free , Travel advance. How do i file a tax extension for free (see also Reimbursements) Travel expenses, Travel, Cruise Ships Another individual accompanying taxpayer, Travel expenses for another individual. How do i file a tax extension for free Away from home, Traveling Away From Home, Tax Home Deductible, What Travel Expenses Are Deductible?, Cruise Ships Summary of (Table 1-1), Table 1-1. How do i file a tax extension for free Travel Expenses You Can Deduct Defined, Travel expenses defined. How do i file a tax extension for free Going home on days off, Going home on days off. How do i file a tax extension for free In U. How do i file a tax extension for free S. How do i file a tax extension for free , Travel in the United States Lodging, Standard Meal Allowance Luxury water travel, Luxury Water Travel Outside U. How do i file a tax extension for free S. How do i file a tax extension for free , Travel Outside the United States Travel to family home, Tax Home Different From Family Home Trucks and vans Depreciation, Trucks and vans. How do i file a tax extension for free Transportation workers, Individuals subject to hours of service limits. How do i file a tax extension for free Transportation workers' expenses, Special rate for transportation workers. How do i file a tax extension for free Two places of work, Two places of work. How do i file a tax extension for free U Unclaimed reimbursements, Where To Report Unions Trips from union hall to place of work, Union members' trips from a union hall. How do i file a tax extension for free Unrecovered basis of car, How to treat unrecovered basis. How do i file a tax extension for free V Volunteers, Volunteers. How do i file a tax extension for free W Weekly travel expense and entertainment record (Table 6-3), THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Prev  Up     Home   More Online Publications
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The How Do I File A Tax Extension For Free

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