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State Tax Slabs

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State Tax Slabs

State tax slabs Publication 575 - Introductory Material Table of Contents What's New Reminders IntroductionThe General Rule. State tax slabs Individual retirement arrangements (IRAs). State tax slabs Civil service retirement benefits. State tax slabs Social security and equivalent tier 1 railroad retirement benefits. State tax slabs Tax-sheltered annuity plans (403(b) plans). State tax slabs Ordering forms and publications. State tax slabs Tax questions. State tax slabs Useful Items - You may want to see: What's New For purposes of the net investment income tax (NIIT), net investment income does not include distributions from a qualified retirement plan (for example, 401(a), 403(a), 403(b), 408, 408A, or 457(b) plans). State tax slabs However, these distributions are taken into account when determining the modified adjusted gross income threshold. State tax slabs Distributions from a nonqualified retirement plan are included in net investment income. State tax slabs See Form 8960, Net Investment Income Tax - Individuals, Estates, and Trusts, and its instructions for more information. State tax slabs Reminders Future developments. State tax slabs  For the latest information about developments related to Publication 575, such as legislation enacted after it was published, go to www. State tax slabs irs. State tax slabs gov/pub575. State tax slabs In-plan Roth rollovers. State tax slabs   Starting in 2013, the American Taxpayer Relief Act of 2012 expanded the rules for in-plan Roth rollovers to include more taxpayers. State tax slabs For more information, see In-plan Roth rollovers under Rollovers, discussed later. State tax slabs Photographs of missing children. State tax slabs  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. State tax slabs Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. State tax slabs You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. State tax slabs Introduction This publication discusses the tax treatment of distributions you receive from pension and annuity plans and also shows you how to report the income on your federal income tax return. State tax slabs How these distributions are taxed depends on whether they are periodic payments (amounts received as an annuity) that are paid at regular intervals over several years or nonperiodic payments (amounts not received as an annuity). State tax slabs What is covered in this publication?   This publication contains information that you need to understand the following topics. State tax slabs How to figure the tax-free part of periodic payments under a pension or annuity plan, including using a simple worksheet for payments under a qualified plan. State tax slabs How to figure the tax-free part of nonperiodic payments from qualified and nonqualified plans, and how to use the optional methods to figure the tax on lump-sum distributions from pension, stock bonus, and profit-sharing plans. State tax slabs How to roll over certain distributions from a retirement plan into another retirement plan or IRA. State tax slabs How to report disability payments, and how beneficiaries and survivors of employees and retirees must report benefits paid to them. State tax slabs How to report railroad retirement benefits. State tax slabs When additional taxes on certain distributions may apply (including the tax on early distributions and the tax on excess accumulation). State tax slabs For additional information on how to report pension or annuity payments on your federal income tax return, be sure to review the instructions on the back of Copies B, C, and 2 of the Form 1099-R that you received and the instructions for Form 1040, lines 16a and 16b (Form 1040A, lines 12a and 12b or Form 1040NR, lines 17a and 17b). State tax slabs A “corrected” Form 1099-R replaces the corresponding original Form 1099-R if the original Form 1099-R contained an error. State tax slabs Make sure you use the amounts shown on the corrected Form 1099-R when reporting information on your tax return. State tax slabs What is not covered in this publication?   The following topics are not discussed in this publication. State tax slabs The General Rule. State tax slabs   This is the method generally used to determine the tax treatment of pension and annuity income from nonqualified plans (including commercial annuities). State tax slabs For a qualified plan, you generally cannot use the General Rule unless your annuity starting date is before November 19, 1996. State tax slabs Although this publication will help you determine whether you can use the General Rule, it will not help you use it to determine the tax treatment of your pension or annuity income. State tax slabs For that and other information on the General Rule, see Publication 939, General Rule for Pensions and Annuities. State tax slabs Individual retirement arrangements (IRAs). State tax slabs   Information on the tax treatment of amounts you receive from an IRA is in Publication 590, Individual Retirement Arrangements (IRAs). State tax slabs Civil service retirement benefits. State tax slabs   If you are retired from the federal government (regular, phased, or disability retirement) or are the survivor or beneficiary of a federal employee or retiree who died, get Publication 721, Tax Guide to U. State tax slabs S. State tax slabs Civil Service Retirement Benefits. State tax slabs Publication 721 covers the tax treatment of federal retirement benefits, primarily those paid under the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS). State tax slabs It also covers benefits paid from the Thrift Savings Plan (TSP). State tax slabs Social security and equivalent tier 1 railroad retirement benefits. State tax slabs   For information about the tax treatment of these benefits, see Publication 915, Social Security and Equivalent Railroad Retirement Benefits. State tax slabs However, this publication (575) covers the tax treatment of the non-social security equivalent benefit portion of tier 1 railroad retirement benefits, tier 2 benefits, vested dual benefits, and supplemental annuity benefits paid by the U. State tax slabs S. State tax slabs Railroad Retirement Board. State tax slabs Tax-sheltered annuity plans (403(b) plans). State tax slabs   If you work for a public school or certain tax-exempt organizations, you may be eligible to participate in a 403(b) retirement plan offered by your employer. State tax slabs Although this publication covers the treatment of benefits under 403(b) plans and discusses in-plan Roth rollovers from 403(b) plans to designated Roth accounts, it does not cover other tax provisions that apply to these plans. State tax slabs For that and other information on 403(b) plans, see Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations. State tax slabs Comments and suggestions. State tax slabs   We welcome your comments about this publication and your suggestions for future editions. State tax slabs   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. State tax slabs NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. State tax slabs Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. State tax slabs   You can send your comments from www. State tax slabs irs. State tax slabs gov/formspubs/. State tax slabs Click on “More Information” and then on “Comment on Tax Forms and Publications. State tax slabs ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. State tax slabs Ordering forms and publications. State tax slabs   Visit www. State tax slabs irs. State tax slabs gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. State tax slabs Internal Revenue Service 1201 N. State tax slabs Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. State tax slabs   If you have a tax question, check the information available on IRS. State tax slabs gov or call 1-800-829-1040. State tax slabs We cannot answer tax questions sent to either of the above addresses. State tax slabs Useful Items - You may want to see: Publication 524 Credit for the Elderly or the Disabled 525 Taxable and Nontaxable Income 560 Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) 571 Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations 590 Individual Retirement Arrangements (IRAs) 721 Tax Guide to U. State tax slabs S. State tax slabs Civil Service Retirement Benefits 915 Social Security and Equivalent Railroad Retirement Benefits 939 General Rule for Pensions and Annuities Form (and Instructions) W-4P Withholding Certificate for Pension or Annuity Payments 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. State tax slabs 4972 Tax on Lump-Sum Distributions 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts See How To Get Tax Help near the end of this publication for information about getting publications and forms. State tax slabs Prev  Up  Next   Home   More Online Publications
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State tax slabs 25. State tax slabs   Nonbusiness Casualty and Theft Losses Table of Contents What's New Introduction Useful Items - You may want to see: CasualtyFamily pet. State tax slabs Progressive deterioration. State tax slabs Damage from corrosive drywall. State tax slabs Theft Loss on Deposits Proof of Loss Figuring a LossDecrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Single Casualty on Multiple Properties Deduction Limits$100 Rule 10% Rule When To Report Gains and LossesDisaster Area Loss How To Report Gains and Losses What's New New Section C of Form 4684 for Ponzi-type investment schemes. State tax slabs  Section C of Form 4684 is new for 2013. State tax slabs You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. State tax slabs Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. State tax slabs You do not need to complete Appendix A. State tax slabs For details, see Losses from Ponzi-type investment schemes , in this chapter. State tax slabs Introduction This chapter explains the tax treatment of personal (not business or investment related) casualty losses, theft losses, and losses on deposits. State tax slabs The chapter also explains the following  topics. State tax slabs How to figure the amount of your loss. State tax slabs How to treat insurance and other reimbursements you receive. State tax slabs The deduction limits. State tax slabs When and how to report a casualty or theft. State tax slabs Forms to file. State tax slabs    When you have a casualty or theft, you have to file Form 4684. State tax slabs You will also have to file one or more of the following forms. State tax slabs Schedule A (Form 1040), Itemized Deductions Schedule D (Form 1040), Capital Gains and Losses Condemnations. State tax slabs   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Disposition of Assets. State tax slabs Workbook for casualties and thefts. State tax slabs    Publication 584 is available to help you make a list of your stolen or damaged personal-use property and figure your loss. State tax slabs It includes schedules to help you figure the loss on your home, its contents, and your motor vehicles. State tax slabs Business or investment-related losses. State tax slabs   For information on a casualty or theft loss of business or income-producing property, see Publication 547, Casualties, Disasters, and Thefts. State tax slabs Useful Items - You may want to see: Publication 544 Sales and Other Dispositions  of Assets 547 Casualties, Disasters, and   Thefts 584 Casualty, Disaster, and Theft   Loss Workbook (Personal-Use  Property) Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. State tax slabs A sudden event is one that is swift, not gradual or progressive. State tax slabs An unexpected event is one that is ordinarily unanticipated and unintended. State tax slabs 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. State tax slabs Deductible losses. State tax slabs   Deductible casualty losses can result from a number of different causes, including the following. State tax slabs Car accidents (but see Nondeductible losses , next, for exceptions). State tax slabs Earthquakes. State tax slabs Fires (but see Nondeductible losses , next, for exceptions). State tax slabs Floods. State tax slabs Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses in Publication 547. State tax slabs Mine cave-ins. State tax slabs Shipwrecks. State tax slabs Sonic booms. State tax slabs Storms, including hurricanes and tornadoes. State tax slabs Terrorist attacks. State tax slabs Vandalism. State tax slabs Volcanic eruptions. State tax slabs Nondeductible losses. State tax slabs   A casualty loss is not deductible if the damage or destruction is caused by the following. State tax slabs Accidentally breaking articles such as glassware or china under normal conditions. State tax slabs A family pet (explained below). State tax slabs A fire if you willfully set it or pay someone else to set it. State tax slabs A car accident if your willful negligence or willful act caused it. State tax slabs The same is true if the willful act or willful negligence of someone acting for you caused the accident. State tax slabs Progressive deterioration (explained later). State tax slabs Family pet. State tax slabs   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. State tax slabs Example. State tax slabs Your antique oriental rug was damaged by your new puppy before it was housebroken. State tax slabs Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. State tax slabs Progressive deterioration. State tax slabs    Loss of property due to progressive deterioration is not deductible as a casualty loss. State tax slabs This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. State tax slabs The following are examples of damage due to progressive deterioration. State tax slabs The steady weakening of a building due to normal wind and weather conditions. State tax slabs The deterioration and damage to a water heater that bursts. State tax slabs However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. State tax slabs Most losses of property caused by droughts. State tax slabs To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. State tax slabs Termite or moth damage. State tax slabs The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. State tax slabs However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. State tax slabs Damage from corrosive drywall. State tax slabs   Under a special procedure, you may be able to claim a casualty loss deduction for amounts you paid to repair damage to your home and household appliances that resulted from corrosive drywall. State tax slabs For details, see Publication 547. State tax slabs Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. State tax slabs The taking of property must be illegal under the laws of the state where it occurred and it must have been done with criminal intent. State tax slabs You do not need to show a conviction for theft. State tax slabs Theft includes the taking of money or property by the following means. State tax slabs Blackmail. State tax slabs Burglary. State tax slabs Embezzlement. State tax slabs Extortion. State tax slabs Kidnapping for ransom. State tax slabs Larceny. State tax slabs Robbery. State tax slabs The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. State tax slabs Decline in market value of stock. State tax slabs   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. State tax slabs 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. State tax slabs You report a capital loss on Schedule D (Form 1040). State tax slabs For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. State tax slabs Mislaid or lost property. State tax slabs   The simple disappearance of money or property is not a theft. State tax slabs 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. State tax slabs Sudden, unexpected, and unusual events are defined earlier. State tax slabs Example. State tax slabs A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. State tax slabs The diamond falls from the ring and is never found. State tax slabs The loss of the diamond is a casualty. State tax slabs Losses from Ponzi-type investment schemes. State tax slabs   If you had a loss from a Ponzi-type investment scheme, see: Revenue Ruling 2009-9, 2009-14 I. State tax slabs R. State tax slabs B. State tax slabs 735 (available at www. State tax slabs irs. State tax slabs gov/irb/2009-14_IRB/ar07. State tax slabs html). State tax slabs Revenue Procedure 2009-20, 2009-14 I. State tax slabs R. State tax slabs B. State tax slabs 749 (available at www. State tax slabs irs. State tax slabs gov/irb/2009-14_IRB/ar11. State tax slabs html). State tax slabs Revenue Procedure 2011-58, 2011-50 I. State tax slabs R. State tax slabs B. State tax slabs 849 (available at www. State tax slabs irs. State tax slabs gov/irb/2011-50_IRB/ar11. State tax slabs html). State tax slabs 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. State tax slabs Skip lines 19 to 27. State tax slabs Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. State tax slabs You do not need to complete Appendix A. State tax slabs For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. State tax slabs   If you choose not to use the procedures in Revenue Procedure 2009-20, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. State tax slabs Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. State tax slabs If you incurred this type of loss, you can choose one of the following ways to deduct the loss. State tax slabs As a casualty loss. State tax slabs As an ordinary loss. State tax slabs As a nonbusiness bad debt. State tax slabs Casualty loss or ordinary loss. State tax slabs   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. State tax slabs The choice is generally made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. State tax slabs 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. State tax slabs 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. State tax slabs Once you make this choice, you cannot change it without permission from the Internal Revenue Service. State tax slabs   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. State tax slabs The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. State tax slabs Your loss is subject to the 2%-of-adjusted-gross-income limit. State tax slabs You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. State tax slabs Nonbusiness bad debt. State tax slabs   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. State tax slabs How to report. State tax slabs   The kind of deduction you choose for your loss on deposits determines how you report your loss. State tax slabs If you choose: Casualty loss — report it on Form 4684 first and then on Schedule A (Form 1040). State tax slabs Ordinary loss — report it on Schedule A (Form 1040) as a miscellaneous itemized deduction. State tax slabs Nonbusiness bad debt — report it on Form 8949 first and then on Schedule D (Form 1040). State tax slabs More information. State tax slabs   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684 or Deposit in Insolvent or Bankrupt Financial Institution in Publication 550. State tax slabs Proof of Loss To deduct a casualty or theft loss, you must be able to prove that you had a casualty or theft. State tax slabs You also must be able to support the amount you take as a deduction. State tax slabs Casualty loss proof. State tax slabs   For a casualty loss, your records should show all the following. State tax slabs The type of casualty (car accident, fire, storm, etc. State tax slabs ) and when it occurred. State tax slabs That the loss was a direct result of the casualty. State tax slabs 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. State tax slabs Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. State tax slabs Theft loss proof. State tax slabs   For a theft loss, your records should show all the following. State tax slabs When you discovered that your property was missing. State tax slabs That your property was stolen. State tax slabs That you were the owner of the property. State tax slabs Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. State tax slabs It is important that you have records that will prove your deduction. State tax slabs If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. State tax slabs Figuring a Loss Figure the amount of your loss using the following steps. State tax slabs Determine your adjusted basis in the property before the casualty or theft. State tax slabs Determine the decrease in fair market value of the property as a result of the casualty or theft. State tax slabs From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. State tax slabs 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. State tax slabs Gain from reimbursement. State tax slabs   If your reimbursement is more than your adjusted basis in the property, you have a gain. State tax slabs This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. State tax slabs If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. State tax slabs See Publication 547 for more information on how to treat a gain from a reimbursement for a casualty or theft. State tax slabs Leased property. State tax slabs   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. State tax slabs 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. State tax slabs 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. State tax slabs FMV of stolen property. State tax slabs   The FMV of property immediately after a theft is considered to be zero, since you no longer have the property. State tax slabs Example. State tax slabs Several years ago, you purchased silver dollars at face value for $150. State tax slabs This is your adjusted basis in the property. State tax slabs Your silver dollars were stolen this year. State tax slabs The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. State tax slabs Your theft loss is $150. State tax slabs Recovered stolen property. State tax slabs   Recovered stolen property is your property that was stolen and later returned to you. State tax slabs 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. State tax slabs Use this amount to refigure your total loss for the year in which the loss was deducted. State tax slabs   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. State tax slabs But report the difference only up to the amount of the loss that reduced your tax. State tax slabs For more information on the amount to report, see Recoveries in chapter 12. State tax slabs 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. State tax slabs However, other measures can also be used to establish certain decreases. State tax slabs Appraisal. State tax slabs   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterward should be made by a competent appraiser. State tax slabs The appraiser must recognize the effects of any general market decline that may occur along with the casualty. State tax slabs This information is needed to limit any deduction to the actual loss resulting from damage to the property. State tax slabs   Several factors are important in evaluating the accuracy of an appraisal, including the following. State tax slabs The appraiser's familiarity with your property before and after the casualty or theft. State tax slabs The appraiser's knowledge of sales of comparable property in the area. State tax slabs The appraiser's knowledge of conditions in the area of the casualty. State tax slabs The appraiser's method of appraisal. State tax slabs    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. State tax slabs For more information on disasters, see Disaster Area Losses, in Pub. State tax slabs 547. State tax slabs Cost of cleaning up or making repairs. State tax slabs   The cost of repairing damaged property is not part of a casualty loss. State tax slabs Neither is the cost of cleaning up after a casualty. State tax slabs But you can use the cost of cleaning up or making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. State tax slabs The repairs are actually made. State tax slabs The repairs are necessary to bring the property back to its condition before the casualty. State tax slabs The amount spent for repairs is not excessive. State tax slabs The repairs take care of the damage only. State tax slabs The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. State tax slabs Landscaping. State tax slabs   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. State tax slabs You may be able to measure your loss by what you spend on the following. State tax slabs Removing destroyed or damaged trees and shrubs minus any salvage you receive. State tax slabs Pruning and other measures taken to preserve damaged trees and shrubs. State tax slabs Replanting necessary to restore the property to its approximate value before the casualty. State tax slabs Car value. State tax slabs    Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. State tax slabs You can use the book's retail values and modify them by such factors as mileage and the condition of your car to figure its value. State tax slabs 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. State tax slabs If your car is not listed in the books, determine its value from other sources. State tax slabs A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. State tax slabs 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. State tax slabs Cost of protection. State tax slabs   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. State tax slabs The amount you spend on insurance or to board up your house against a storm is not part of your loss. State tax slabs   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. State tax slabs An example would be the cost of a dike to prevent flooding. State tax slabs Exception. State tax slabs   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. State tax slabs See Disaster Area Losses in Publication 547. State tax slabs Incidental expenses. State tax slabs   Any incidental expenses you have due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. State tax slabs Replacement cost. State tax slabs   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. State tax slabs Sentimental value. State tax slabs   Do not consider sentimental value when determining your loss. State tax slabs 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. State tax slabs Decline in market value of property in or near casualty area. State tax slabs   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. State tax slabs You have a loss only for actual casualty damage to your property. State tax slabs However, if your home is in a federally declared disaster area, see Disaster Area Losses in Publication 547. State tax slabs Costs of photographs and appraisals. State tax slabs    Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. State tax slabs Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. State tax slabs    Appraisals are used to figure the decrease in FMV because of a casualty or theft. State tax slabs See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. State tax slabs   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. State tax slabs You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). State tax slabs For information about miscellaneous deductions, see chapter 28. State tax slabs Adjusted Basis Adjusted basis is your basis in the property (usually cost) increased or decreased by various events, such as improvements and casualty losses. State tax slabs For more information, see chapter 13. State tax slabs Insurance and Other Reimbursements If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. State tax slabs You do not have a casualty or theft loss to the extent you are reimbursed. State tax slabs If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. State tax slabs You must reduce your loss even if you do not receive payment until a later tax year. State tax slabs See Reimbursement Received After Deducting Loss , later. State tax slabs Failure to file a claim for reimbursement. State tax slabs   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. State tax slabs Otherwise, you cannot deduct this loss as a casualty or theft loss. State tax slabs However, this rule does not apply to the portion of the loss not covered by insurance (for example, a deductible). State tax slabs Example. State tax slabs You have a car insurance policy with a $1,000 deductible. State tax slabs Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the deduction limits discussed later). State tax slabs This is true even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. State tax slabs Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. State tax slabs Other types of reimbursements are discussed next. State tax slabs Also see the Instructions for Form 4684. State tax slabs Employer's emergency disaster fund. State tax slabs   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. State tax slabs Take into consideration only the amount you used to replace your destroyed or damaged property. State tax slabs Example. State tax slabs Your home was extensively damaged by a tornado. State tax slabs Your loss after reimbursement from your insurance company was $10,000. State tax slabs Your employer set up a disaster relief fund for its employees. State tax slabs Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. State tax slabs You received $4,000 from the fund and spent the entire amount on repairs to your home. State tax slabs In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. State tax slabs Your casualty loss before applying the deduction limits discussed later is $6,000. State tax slabs Cash gifts. State tax slabs   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. State tax slabs This applies even if you use the money to pay for repairs to property damaged in the disaster. State tax slabs Example. State tax slabs Your home was damaged by a hurricane. State tax slabs Relatives and neighbors made cash gifts to you that were excludable from your income. State tax slabs You used part of the cash gifts to pay for repairs to your home. State tax slabs There were no limits or restrictions on how you could use the cash gifts. State tax slabs Because it was an excludable gift, the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. State tax slabs Insurance payments for living expenses. State tax slabs   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. State tax slabs You lose the use of your main home because of a casualty. State tax slabs Government authorities do not allow you access to your main home because of a casualty or threat of one. State tax slabs Inclusion in income. State tax slabs   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. State tax slabs Report this amount on Form 1040, line 21. State tax slabs However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. State tax slabs See Qualified disaster relief payments, under Disaster Area Losses in Publication 547. State tax slabs   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. State tax slabs Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. State tax slabs Generally, these expenses include the amounts you pay for the following. State tax slabs Rent for suitable housing. State tax slabs Transportation. State tax slabs Food. State tax slabs Utilities. State tax slabs Miscellaneous services. State tax slabs 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. State tax slabs Example. State tax slabs As a result of a fire, you vacated your apartment for a month and moved to a motel. State tax slabs You normally pay $525 a month for rent. State tax slabs None was charged for the month the apartment was vacated. State tax slabs Your motel rent for this month was $1,200. State tax slabs You normally pay $200 a month for food. State tax slabs Your food expenses for the month you lived in the motel were $400. State tax slabs You received $1,100 from your insurance company to cover your living expenses. State tax slabs You determine the payment you must include in income as follows. State tax slabs 1) Insurance payment for living expenses $1,100 2) Actual expenses during the month you are unable to use your home because of fire 1,600   3) Normal living expenses 725   4) Temporary increase in living  expenses: Subtract line 3 from line 2 875 5) Amount of payment includible  in income: Subtract line 4  from line 1 $ 225 Tax year of inclusion. State tax slabs   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. State tax slabs Example. State tax slabs Your main home was destroyed by a tornado in August 2011. State tax slabs You regained use of your home in November 2012. State tax slabs The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. State tax slabs You include this amount in income on your 2012 Form 1040. State tax slabs 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. State tax slabs Disaster relief. State tax slabs   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. State tax slabs Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster are not taxable income to you. State tax slabs For more information, see Disaster Area Losses in Publication 547. State tax slabs Disaster unemployment assistance payments are unemployment benefits that are taxable. State tax slabs Generally, disaster relief grants and qualified disaster mitigation payments made under the Robert T. State tax slabs Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on April 15, 2005) are not includible in your income. State tax slabs See Disaster Area Losses in Publication 547. State tax slabs Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using your expected reimbursement, you may have to adjust your tax return for the tax year in which you receive your actual reimbursement. State tax slabs This section explains the adjustment you may have to make. State tax slabs Actual reimbursement less than expected. State tax slabs   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. State tax slabs Example. State tax slabs Your personal car had an FMV of $2,000 when it was destroyed in a collision with another car in 2012. State tax slabs The accident was due to the negligence of the other driver. State tax slabs At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. State tax slabs You did not have a deductible loss in 2012. State tax slabs In January 2013, the court awarded you a judgment of $2,000. State tax slabs However, in July it became apparent that you will be unable to collect any amount from the other driver. State tax slabs You can deduct the loss in 2013 subject to the limits discussed later. State tax slabs Actual reimbursement more than expected. State tax slabs   If you later receive more reimbursement than you expected after you claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. State tax slabs 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. State tax slabs You do not refigure your tax for the year you claimed the deduction. State tax slabs For more information, see Recoveries in chapter 12. State tax slabs 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. State tax slabs 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. State tax slabs Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. State tax slabs See Figuring a Gain in Publication 547 for more information on how to treat a gain from the reimbursement of a casualty or theft. State tax slabs Actual reimbursement same as expected. State tax slabs   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. State tax slabs Example. State tax slabs In December 2013, you had a collision while driving your personal car. State tax slabs Repairs to the car cost $950. State tax slabs You had $100 deductible collision insurance. State tax slabs Your insurance company agreed to reimburse you for the rest of the damage. State tax slabs Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. State tax slabs Due to the $100 rule (discussed later under Deduction Limits ), you cannot deduct the $100 you paid as the deductible. State tax slabs When you receive the $850 from the insurance company in 2014, do not report it as income. State tax slabs Single Casualty on Multiple Properties Personal property. State tax slabs   Personal property is any property that is not real property. State tax slabs 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. State tax slabs Then combine these separate losses to figure the total loss from that casualty or theft. State tax slabs Example. State tax slabs A fire in your home destroyed an upholstered chair, an oriental rug, and an antique table. State tax slabs You did not have fire insurance to cover your loss. State tax slabs (This was the only casualty or theft you had during the year. State tax slabs ) You paid $750 for the chair and you established that it had an FMV of $500 just before the fire. State tax slabs The rug cost $3,000 and had an FMV of $2,500 just before the fire. State tax slabs You bought the table at an auction for $100 before discovering it was an antique. State tax slabs It had been appraised at $900 before the fire. State tax slabs You figure your loss on each of these items as follows:     Chair Rug Table 1) Basis (cost) $750 $3,000 $100 2) FMV before fire $500 $2,500 $900 3) FMV after fire –0– –0– –0– 4) Decrease in FMV $500 $2,500 $900 5) Loss (smaller of (1) or  (4)) $500 $2,500 $100           6) Total loss     $3,100 Real property. State tax slabs   In figuring a casualty loss on personal-use real property, treat the entire property (including any improvements, such as buildings, trees, and shrubs) as one item. State tax slabs Figure the loss using the smaller of the adjusted basis or the decrease in FMV of the entire property. State tax slabs Example. State tax slabs You bought your home a few years ago. State tax slabs You paid $160,000 ($20,000 for the land and $140,000 for the house). State tax slabs You also spent $2,000 for landscaping. State tax slabs This year a fire destroyed your home. State tax slabs The fire also damaged the shrubbery and trees in your yard. State tax slabs The fire was your only casualty or theft loss this year. State tax slabs Competent appraisers valued the property as a whole at $200,000 before the fire, but only $30,000 after the fire. State tax slabs (The loss to your household furnishings is not shown in this example. State tax slabs It would be figured separately on each item, as explained earlier under Personal property . State tax slabs ) Shortly after the fire, the insurance company paid you $155,000 for the loss. State tax slabs You figure your casualty loss as follows: 1) Adjusted basis of the entire property (land, building, and landscaping) $162,000 2) FMV of entire property before fire $200,000 3) FMV of entire property after fire 30,000 4) Decrease in FMV of entire  property $170,000 5) Loss (smaller of (1) or (4)) $162,000 6) Subtract insurance 155,000 7) Amount of loss after reimbursement $7,000 Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. State tax slabs If the loss was to property for your personal use or your family's use, there are two limits on the amount you can deduct for your casualty or theft loss. State tax slabs You must reduce each casualty or theft loss by $100 ($100 rule). State tax slabs You must further reduce the total of all your casualty or theft losses by 10% of your adjusted gross income (10% rule). State tax slabs You make these reductions on Form 4684. State tax slabs These rules are explained next and Table 25-1 summarizes how to apply the $100 rule and the 10% rule in various situations. State tax slabs For more detailed explanations and examples, see Publication 547. State tax slabs Table 25-1. State tax slabs How To Apply the Deduction Limits for Personal-Use Property   $100 Rule 10% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. State tax slabs Apply this rule after you have figured the amount of your loss. State tax slabs You must reduce your total casualty or theft loss by 10% of your adjusted gross income. State tax slabs Apply this rule after you reduce each loss by $100 (the $100 rule). State tax slabs Single Event Apply this rule only once, even if many pieces of property are affected. State tax slabs Apply this rule only once, even if many pieces of property are affected. State tax slabs More Than One Event Apply to the loss from each event. State tax slabs Apply to the total of all your losses from all events. State tax slabs More Than One Person— With Loss From the Same Event (other than a married couple filing jointly) Apply separately to each person. State tax slabs Apply separately to each person. State tax slabs Married Couple—With Loss From the Same Event Filing Jointly Apply as if you were one person. State tax slabs Apply as if you were one person. State tax slabs Filing Separately Apply separately to each spouse. State tax slabs Apply separately to each spouse. State tax slabs More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. State tax slabs Apply separately to each owner of jointly owned property. State tax slabs Property used partly for business and partly for personal purposes. State tax slabs   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use part and for the business or income-producing part. State tax slabs You must figure each loss separately because the $100 rule and the 10% rule apply only to the loss on the personal-use part of the property. State tax slabs $100 Rule After you have figured your casualty or theft loss on personal-use property, you must reduce that loss by $100. State tax slabs This reduction applies to each total casualty or theft loss. State tax slabs It does not matter how many pieces of property are involved in an event. State tax slabs Only a single $100 reduction applies. State tax slabs Example. State tax slabs A hailstorm damages your home and your car. State tax slabs Determine the amount of loss, as discussed earlier, for each of these items. State tax slabs Since the losses are due to a single event, you combine the losses and reduce the combined amount by $100. State tax slabs Single event. State tax slabs   Generally, events closely related in origin cause a single casualty. State tax slabs 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. State tax slabs 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. State tax slabs Apply this rule after you reduce each loss by $100. State tax slabs For more information, see the Form 4684 instructions. State tax slabs If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. State tax slabs Example 1. State tax slabs In June, you discovered that your house had been burglarized. State tax slabs Your loss after insurance reimbursement was $2,000. State tax slabs Your adjusted gross income for the year you discovered the theft is $29,500. State tax slabs You first apply the $100 rule and then the 10% rule. State tax slabs Figure your theft loss deduction as follows. State tax slabs 1) Loss after insurance $2,000 2) Subtract $100 100 3) Loss after $100 rule $1,900 4) Subtract 10% × $29,500 AGI 2,950 5) Theft loss deduction –0– You do not have a theft loss deduction because your loss after you apply the $100 rule ($1,900) is less than 10% of your adjusted gross income ($2,950). State tax slabs Example 2. State tax slabs In March, you had a car accident that totally destroyed your car. State tax slabs You did not have collision insurance on your car, so you did not receive any insurance reimbursement. State tax slabs Your loss on the car was $1,800. State tax slabs In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items stored there. State tax slabs Your loss on the basement items after reimbursement was $2,100. State tax slabs Your adjusted gross income for the year that the accident and fire occurred is $25,000. State tax slabs You figure your casualty loss deduction as follows. State tax slabs       Base-     Car ment 1) Loss $1,800 $2,100 2) Subtract $100 per incident 100 100 3) Loss after $100 rule $1,700 $2,000 4) Total loss $3,700 5) Subtract 10% × $25,000 AGI 2,500 6) Casualty loss deduction $1,200 Gains and losses. State tax slabs   If you had both gains and losses from casualties or thefts to personal-use property, you must compare your total gains to your total losses. State tax slabs 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. State tax slabs Casualty or theft gains do not include gains you choose to postpone. State tax slabs See Publication 547 for information on the postponement of gain. State tax slabs Losses more than gains. State tax slabs   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. State tax slabs The rest, if any, is your deductible loss from personal-use property. State tax slabs Gains more than losses. State tax slabs   If your recognized gains are more than your losses, subtract your losses from your gains. State tax slabs The difference is treated as capital gain and must be reported on Schedule D (Form 1040). State tax slabs The 10% rule does not apply to your gains. State tax slabs When To Report Gains and Losses Gains. State tax slabs   If you receive an insurance or other reimbursement that is more than your adjusted basis in the destroyed or stolen property, you have a gain from the casualty or theft. State tax slabs You must include this gain in your income in the year you receive the reimbursement, unless you choose to postpone reporting the gain as explained in Publication 547. State tax slabs If you have a loss, see Table 25-2 . State tax slabs Table 25-2. State tax slabs When To Deduct a Loss IF you have a loss. State tax slabs . State tax slabs . State tax slabs THEN deduct it in the year. State tax slabs . State tax slabs . State tax slabs from a casualty, the loss occurred. State tax slabs in a federally declared disaster area, the disaster occurred or the year immediately before the disaster. State tax slabs from a theft, the theft was discovered. State tax slabs on a deposit treated as a:   • casualty or any ordinary loss, a reasonable estimate can be made. State tax slabs • bad debt, deposits are totally worthless. State tax slabs Losses. State tax slabs   Generally, you can deduct a casualty loss that is not reimbursable only in the tax year in which the casualty occurred. State tax slabs This is true even if you do not repair or replace the damaged property until a later year. State tax slabs   You can deduct theft losses that are not reimbursable only in the year you discover your property was stolen. State tax slabs   If you are not sure whether part of your casualty or theft loss will be reimbursed, do not deduct that part until the tax year when you become reasonably certain that it will not be reimbursed. State tax slabs Loss on deposits. State tax slabs   If your loss is a loss on deposits in an insolvent or bankrupt financial institution, see Loss on Deposits , earlier. State tax slabs Disaster Area Loss You generally must deduct a casualty loss in the year it occurred. State tax slabs However, if you have a casualty loss from a federally declared disaster that occurred in an area warranting public or individual assistance (or both), you can choose to deduct the loss on your tax return or amended return for either of the following years. State tax slabs The year the disaster occurred. State tax slabs The year immediately preceding the year the disaster occurred. State tax slabs Gains. State tax slabs    Special rules apply if you choose to postpone reporting gain on property damaged or destroyed in a federally declared disaster area. State tax slabs For those special rules, see Publication 547. State tax slabs Postponed tax deadlines. State tax slabs   The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a federally declared disaster. State tax slabs The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. State tax slabs   If any tax deadline is postponed, the IRS will publicize the postponement in your area by publishing a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). State tax slabs Go to www. State tax slabs irs. State tax slabs gov/uac/Tax-Relief-in-Disaster-Situations to find out if a tax deadline has been postponed for your area. State tax slabs Who is eligible. State tax slabs   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. State tax slabs Any individual whose main home is located in a covered disaster area (defined next). State tax slabs Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. State tax slabs Any individual who is a relief worker affiliated with a recognized government or philanthropic organization who is assisting in a covered disaster area. State tax slabs Any individual, business entity, or sole proprietorship whose records are needed to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. State tax slabs The main home or principal place of business does not have to be located in the covered disaster area. State tax slabs Any estate or trust that has tax records necessary to meet a postponed tax deadline, provided those records are maintained in a covered disaster area. State tax slabs The spouse on a joint return with a taxpayer who is eligible for postponements. State tax slabs Any individual, business entity, or sole proprietorship not located in a covered disaster area, but whose records necessary to meet a postponed tax deadline are located in the covered disaster area. State tax slabs Any individual visiting the covered disaster area who was killed or injured as a result of the disaster. State tax slabs Any other person determined by the IRS to be affected by a federally declared disaster. State tax slabs Covered disaster area. State tax slabs   This is an area of a federally declared disaster in which the IRS has decided to postpone tax deadlines for up to 1 year. State tax slabs Abatement of interest and penalties. State tax slabs   The IRS may abate the interest and penalties on underpaid income tax for the length of any postponement of tax deadlines. State tax slabs More information. State tax slabs   For more information, see Disaster Area Losses in Publication 547. State tax slabs How To Report Gains and Losses Use Form 4684 to report a gain or a deductible loss from a casualty or theft. State tax slabs If you have more than one casualty or theft, use a separate Form 4684 to determine your gain or loss for each event. State tax slabs Combine the gains and losses on one Form 4684. State tax slabs Follow the form instructions as to which lines to fill out. State tax slabs In addition, you must use the appropriate schedule to report a gain or loss. State tax slabs The schedule you use depends on whether you have a gain or loss. State tax slabs If you have a: Report it on: Gain Schedule D (Form 1040) Loss Schedule A (Form 1040) Adjustments to basis. State tax slabs   If you have a casualty or theft loss, you must decrease your basis in the property by any insurance or other reimbursement you receive, and by any deductible loss. State tax slabs Amounts you spend to restore your property after a casualty increase your adjusted basis. State tax slabs See Adjusted Basis in chapter 13 for more information. State tax slabs Net operating loss (NOL). State tax slabs    If your casualty or theft loss deduction causes your deductions for the year to be more than your income for the year, you may have an NOL. State tax slabs You can use an NOL to lower your tax in an earlier year, allowing you to get a refund for tax you have already paid. State tax slabs Or, you can use it to lower your tax in a later year. State tax slabs You do not have to be in business to have an NOL from a casualty or theft loss. State tax slabs For more information, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. State tax slabs Prev  Up  Next   Home   More Online Publications