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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Tax Act Online 2012 Login

How Do I File My 2012 Taxes NowOnline 1040ez Filing1040 Ez Form 2012Efile Extension1040ez Form For 2011Irs ComFind 1040ez Irs Form 2010Can You E File A 1040xMyfreetaxsHr Free FileFree Tax AmendmentIrs Form 1040x 2010Senior Tax Rebate2012 Income Tax Return2011 Irs Forms And PublicationsFreefilefillableforms ComWhere Can I File 2011 Taxes For FreeCheap Tax SoftwareHow To Fill 1040nr2009 1040 FormsHelp Filling Out 1040x1040 Ez 2010 Form2011 1040 Ez FormH&r Block FreeTurbo Tax Amended ReturnFiling Taxes In The MilitaryFree Efile For 2012 Taxes1040ez Tax FormDoes Military Pay TaxesFile My Federal And State Taxes For FreeH&r Block Free MilitaryIrs Easy FormHow Do I Amend My 2012 TaxesFile My Taxes For FreeHow To File My 2012 Taxes LateFiling Ez Form Online2010 Tax Software Free DownloadTurbotax 1040ezFree State Tax Efile For Low IncomeFile Taxes 2006

Tax Act Online 2012 Login

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

U.S. Senate

The U.S. Senate and the U.S. House of Representatives make up the two chambers of Congress. The Senate has 100 members, 2 from each state, who are elected to serve for a term of 6 years.

The Tax Act Online 2012 Login

Tax act online 2012 login Publication 850 (EN/SP) - Introductory Material Table of Contents Introduction Introduction This glossary is developed by the Tax Forms and Publications Division of the Internal Revenue Service, in consultation with the Translation Commission of the North American Academy of the Spanish Language (Comisión de Traducciones de la Academia Norteamericana de la Lengua Española) and with the Graduate Program in Translation of the University of Puerto Rico (Programa Graduado en Traducción de la Universidad de Puerto Rico). Tax act online 2012 login Its purpose is to establish high standards for the quality of language usage, to promote uniformity in language usage, and to minimize the risk of misinterpretation of Spanish-language materials issued by the Service. Tax act online 2012 login To meet the needs of the largest segment of taxpayers whose primary language is Spanish, the Service has issued certain Spanish-language materials. Tax act online 2012 login Problems arise, however, because there is some variation in tax terminology used in Spanish-speaking countries. Tax act online 2012 login Also, invention and compromise are involved in selecting words and phrases to describe certain tax concepts that have no precise equivalent in the Spanish language or legal tradition. Tax act online 2012 login To help resolve these problems, a group of United States, Spanish, and Spanish-American academicians, professors, lawyers, accountants, translators, and tax law specialists developed this glossary. Tax act online 2012 login Their long and varied experience with the tax systems in their own, and other countries, gives assurance of reliability. Tax act online 2012 login The criteria used for words in this glossary are: consistency of usage with other governmental agencies, Spanish writing style for the tax forms and publications, and words relating to Accounting, Economics, Finance, Law, Technology and its related fields. Tax act online 2012 login Any issuance containing language consistent with this glossary should be reasonably satisfactory for purposes of general guidance regarding the rights and obligations of taxpayers. Tax act online 2012 login It is not intended, however, that any term in this glossary should be understood to change the meaning of any provisions of law, regulations, or any other authoritative precedent. Tax act online 2012 login A periodic review is made to determine whether any additions, deletions, or revisions are needed. Tax act online 2012 login Some of the terms listed are identified by the abbreviation “P. Tax act online 2012 login R. Tax act online 2012 login ” These terms are for use in tax forms and publications intended for circulation exclusively in Puerto Rico. Tax act online 2012 login Users are invited to send their comments to: Internal Revenue Service Virtual Translation Office SE:W:CAR:MP:T:LS:VTO 1111 Constitution Ave. Tax act online 2012 login , N. Tax act online 2012 login W. Tax act online 2012 login , IR-6102 Washington, DC 20224 or electronically to: vto@irs. Tax act online 2012 login gov Prev  Up  Next   Home   More Online Publications