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Turbotax Deluxe Federal E File 2012 For Pc Download

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

FS-2009-8, January 2009

(Updated June 21, 2010 — For information regarding the filing of 2009 income tax returns, refer to the last section of this document, "Reporting Losses from a Federally Declared Disaster Occurring in 2010.")

The National Disaster Relief Act of 2008, Subtitle B or Title VII of the Emergency Economic Stabilization Act of 2008, signed into law on Oct. 3, 2008, as Public Law 110-343, provides tax relief for victims of federally declared disasters occurring after
Dec. 31, 2007, and before Jan. 1, 2010.

Prior to enactment of the National Disaster Relief Act, when a major disaster struck, Congress would draft legislation providing targeted tax benefits for taxpayers affected by the disaster that were specific to that particular disaster.

The National Disaster Relief Act, which provides a broad package of tax benefits that may be used by anyone who is affected by a federally declared disaster, effectively replaces the strategy of providing targeted benefits for disaster victims in the weeks or months following the incident. Certain provisions of the National Disaster Relief Act of 2008 do not apply to the Midwestern disaster areas –– disasters affecting the Midwest that were declared from May 20, 2008 through July 31, 2008 –– because the Heartland and Hurricane Ike Disaster Relief Act, part of the same legislation that resulted in the National Disaster Relief Act, provides other tax benefits. See Publication 4492-B for detailed information on the tax benefits that apply to the Midwestern disaster areas. 

The National Disaster Relief Act provides the following tax benefits: 

  • Allows all taxpayers, not just those who itemize, to claim the casualty loss deduction regardless of the taxpayer’s adjusted gross income level;
  • Increases the amount by which all individual taxpayers must reduce their personal casualty losses from each casualty from $100 to $500 for taxable years beginning after Dec. 31, 2008. The reduction amount returns to $100 for taxable years beginning after Dec. 31, 2009;   
  • Removes the requirement that the net casualty loss deduction be allowed only if the casualty loss exceeds 10 percent of the taxpayer’s adjusted gross income;
  • Provides a five-year net operating loss (NOL) carryback for qualified natural disaster losses.
  • Waives certain mortgage revenue bond requirements for affected taxpayers and allows the bond proceeds to be used for rebuilding.

For business taxpayers, the Act also:   

  • Allows an affected business taxpayer to deduct certain qualified disaster cleanup expenses;
  • Allows an affected business taxpayer to deduct 50 percent of the cost of qualifying property in addition to the regular depreciation allowance that is normally available; and
  • Increases the limits that an affected business taxpayer can expense for qualifying section 179 property.

Major portions of the National Disaster Relief Act are highlighted below.

See Publication 547, Casualties, Disasters, and Thefts, for information necessary in preparing 2008 tax returns. 

Section 706: Losses Attributable to Federally Declared Disasters

Section 706 of the National Disaster Relief Act provides relief to individual taxpayers whose personal-use property was damaged or destroyed by a casualty in a federally declared disaster area. 

Under prior law, individuals who suffered casualty losses as a result of a Presidentially-declared disaster –– the term was redefined as “federally declared disaster” in the legislation –– were required to reduce the loss from each casualty event by $100 and reduce the total of their casualty losses for the tax year by 10 percent of their adjusted gross income. In addition, these individuals were required to claim their casualty losses as an itemized deduction. 

The new law removes the 10 percent of adjusted gross income limitation for net disaster losses and allows individuals to claim the net disaster losses even if they do not itemize their deductions. 

To qualify, a loss must be attributable to a federally declared disaster and occur in an area determined by the President to warrant federal assistance. A federally declared disaster is any disaster subsequently determined by the President to warrant assistance by the federal government under the Stafford Act. The deduction is limited to the “net disaster loss” which consists of the excess of personal casualty losses attributable to a federally declared disaster over personal casualty gains. The new law is effective for disasters declared in taxable years beginning after Dec. 31, 2007, and occurring before Jan. 1, 2010. Information on disaster declarations and the areas they encompass may be found at the Federal Emergency Management Agency (FEMA) Web site.

The new law also changes the amount by which all individual taxpayers must reduce their personal casualty losses from each casualty from $100 to $500. This change is effective for taxable years beginning after Dec. 31, 2008. The reduction amount returns to $100 for taxable years beginning after Dec. 31, 2009.   

For more information on these tax law changes, see Publication 547, Casualties, Disasters, and Thefts.

Section 712 provides that these changes to the law do not apply to the casualty losses in the Midwestern disaster areas declared during the period beginning on May 20, 2008, and ending on July 31, 2008. See Publication 4492-B for more information on the Midwestern disaster areas.

Section 707: Expensing of Qualified Disaster Expenses

Section 707 of the National Disaster Relief Act allows taxpayers to elect to currently deduct qualified disaster expenses in the tax year paid or incurred. Qualified disaster expenses consist of expenditures paid or incurred in connection with a trade or business or with business-related property that otherwise must be capitalized and that are:

  • For the abatement or control of hazardous substances that were released on account of a federally declared disaster;
  • Debris removal or demolition of structures on real property damaged or destroyed by a federally declared disaster; or
  • For the repair of business-related property damaged by a federally declared disaster. 

As previously explained, a federally declared disaster is any disaster subsequently determined by the President to warrant assistance by the federal government under the Stafford Act. This provision is effective for amounts paid or incurred after Dec. 31, 2007, in connection with disasters declared after that date and federally declared disasters occurring before Jan. 1, 2010. 

Section 712 provides that these changes to the law do not apply to the casualty losses in the Midwestern disaster areas declared during the period beginning on May 20, 2008, and ending on July 31, 2008

Section 708: Net Operating Losses Attributable to Federally Declared Disasters

In general, a net operating loss is carried back two years and carried forward 20. Section 708 of the National Disaster Relief Act allows taxpayers to carry back a qualified disaster loss five years. A qualified disaster loss is the lesser of the taxpayer’s net operating loss for the taxable year or the sum of the following:

  • The taxpayer’s losses allowable under section 165 of the Internal Revenue Code for the taxable year attributable to a federally declared disaster occurring before Jan. 1, 2010, and occurring in a disaster area; and
  • The taxpayer’s deduction for the taxable year for qualified disaster expenses allowable under section 198A(a) of the Internal Revenue Code (or the amount that would have been allowable if the taxpayer deducted qualified disaster expenses). 

A qualified disaster loss is treated a net operating loss that is separate from the taxpayer’s regular NOL. 

Section 708 also includes a provision that allows taxpayers to elect to disregard the five-year carryback rule for their qualified disaster loss. . 

Finally, Section 708 provides an exception to the general rule that a taxpayer may use an alternative minimum tax (AMT) net operating loss deduction to offset only 90 percent of the taxpayer’s alternative minimum taxable income. Section 708 provides that the 90-percent limit does not apply to the portion of the AMT net operating loss deduction attributable to a qualified disaster loss. 

These rules apply to disasters declared in taxable years beginning after Dec. 31, 2007.  

Section 712 provides that these changes to the law do not apply to the Midwestern disaster areas declared during the period beginning on May 20, 2008, and ending on July 31, 2008.

Section 709: Waiver of Certain Mortgage Revenue Bond Requirements Following Federally Declared Disasters

Section 709 of the National Disaster Relief Act adds new paragraph 12 to section 143(k) of the Internal Revenue Code, which waives certain mortgage revenue bond requirements otherwise applicable where an affected taxpayer’s principal residence is destroyed or damaged as a result of a federally declared disaster. An earlier law, the Housing Assistance Tax Act of 2008 enacted on June 30, 2008, also added a different §143(k)(12) to the Code. So currently there are two §143(k)(12)s in the Code.

New Code section 143(k)(12)(A) provides that, at the election of the taxpayer, if a person’s principal residence is destroyed –– the home is rendered unsafe for use as a result of a federally declared disaster occurring between Dec. 31, 2007 and Jan. 1, 2010, or the home is demolished or relocated because of an order issued as a result of such federally declared disaster occurring during such timeframe –– then for two years following the date of such disaster, the three-year requirement of section 143(d)(1) does not apply and the purchase price requirement is relaxed. Accordingly, such person may receive a mortgage loan financed with the proceeds of tax exempt qualified mortgage bonds regardless of whether he owned his principal residence within three years of receiving such mortgage loan, and such mortgage loan may be for the acquisition of a home which costs 110 percent of the average area purchase price. 

New Code section 143(k)(12)(B) provides that, at the election of the taxpayer, if a person’s principal residence is damaged as a result of a federally declared disaster occurring after Dec. 31, 2007, and before Jan. 1, 2010, any loan taken by such person to repair or reconstruct such residence in an amount equal to the lesser of the cost of such repair or reconstruction or $150,000 may be treated as a qualified rehabilitation loan and thus may be financed using the proceeds of tax-exempt qualified mortgage bonds. An election, once made, cannot be revoked unless permission is granted by the Secretary. 

Section 709 further provides that a taxpayer who makes a section 143(k)(12) election  may not also elect to apply the special rules for residences located in disaster areas found in Code section 143(k)(11). The special rules found in Code section 143(k)(11) allow taxpayers to use the proceeds of tax exempt qualified mortgage bonds issued between May 1, 2008, and Jan. 1, 2010, to finance mortgage loans for residences located in disaster areas for two years from the date of the applicable disaster declaration without regard to the three-year requirement by treating the residence as if it were a targeted area residence for purposes of the purchase price requirement and the income requirements. This provision, unlike § 143(k)(12), does not limit the financing only to those taxpayers whose homes were damaged by the disaster.

Section 712 provides that these changes to the law do not apply to the Midwestern disaster areas declared during the period beginning on May 20, 2008, and ending on July 31, 2008.

Section 710: Special Depreciation Allowance for Qualified Disaster Property

Section 710 of the National Disaster Relief Act provides a special 50 percent depreciation allowance for purchases of qualified disaster assistance property. It allows taxpayers to deduct 50 percent of the cost of qualified disaster assistance property in addition to the regular depreciation allowance that is normally available.

This new special “bonus depreciation” allowance applies to most types of tangible personal property and computer software acquired on or after the date on which the federally declared disaster occurs, and placed in service on or before Dec. 31 of the third year following the date on which the federally declared disaster occurs. In addition, the new bonus depreciation allowance applies to most nonresidential real property and residential rental property acquired on or after the date on which the federally declared disaster occurs, and placed in service on or before Dec. 31 of the fourth year following the date on which the federally declared disaster occurs.

To qualify for the new bonus depreciation allowance, 80 percent or more of the use of the property must be in the disaster area and in the active conduct of a trade or business by the taxpayer in that disaster area. Also, the property owner must rehabilitate property damaged, or replace property destroyed or condemned, as a result of the federally declared disaster and must be similar in nature to, and located in the same county as, the property being rehabilitated or replaced.

Section 711: Increased Expensing for Qualified Disaster Assistance Property

In general, a taxpayer may elect to expense up to a certain amount or dollar limit of section 179 property placed in service during the tax year. However, this dollar limit is reduced, but not below zero, if the cost of section 179 property placed in service during that year exceeds a certain amount, or reduced dollar limit. For 2008, the dollar limit is $250,000 and the reduced dollar limit is $800,000.

Section 711 of the National Disaster Relief Act increases the limits that businesses can expense for qualified section 179 disaster assistance property. Generally, the new law increases the dollar limit that is normally available for a particular tax year by the lesser of $100,000, or the cost of qualified section 179 disaster assistance property placed in service during that year. Also, the new law generally increases the reduced dollar limit that is normally available for a particular year by the lesser of $600,000, or the cost of qualified section 179 disaster assistance property placed in service during that year.    

Qualified section 179 disaster assistance property is section 179 property that is qualified disaster assistance property for purposes of the new bonus depreciation allowance provided under section 710 of the National Disaster Relief Act. Section 179 property is most types of tangible personal property and off-the-shelf computer software.

The new law did not change the amount that a taxpayer can elect to expense for certain sport utility vehicles and certain other vehicles placed in service during the tax year.  Accordingly, a taxpayer cannot elect to expense more than $25,000 of the cost of these types of vehicles.

Section 712: Coordination with Heartland Disaster Relief

Section 712 of the National Disaster Relief Act explains that certain provisions contained in the National Disaster Relief Act do not apply to the Midwestern Disaster Areas. For information specific to the Midwestern Disaster Areas, see Publication 4492-B.

Reporting Losses from a Federally Declared Disaster Occurring in 2010

The National Disaster Relief Act of 2008, Subtitle B or Title VII of the Emergency Economic Stabilization Act of 2008, provided enhanced tax relief for victims of federally declared disasters occurring after Dec. 31, 2007, and before Jan. 1, 2010. Those provisions are not effective for disasters occurring after Dec. 31, 2009. Legislation extending the provisions to disasters occurring before Jan. 1, 2011, has been proposed but has not yet been signed into law.

Because the enhanced casualty loss provisions are not effective for federally declared disasters occurring after Dec. 31, 2009, taxpayers affected by federally declared disasters in 2010 may take the loss into account for tax year 2009. See Page 12 of the 2009 version of Publication 547 for information on elections to deduct disaster losses in the year preceding the disaster year, including the time limits on making such elections.

This means, if you are an affected taxpayer with respect to a federally declared disaster occurring after Dec. 31, 2009, you may claim the loss on your 2009 income tax return. Claiming a loss on your 2009 return will allow you to take advantage of the National Disaster Relief Act provisions effective for tax year 2009. 

Page Last Reviewed or Updated: 20-Mar-2014

The Turbotax Deluxe Federal E File 2012 For Pc Download

Turbotax deluxe federal e file 2012 for pc download Publication 584 - Introductory Material Table of Contents What's New Introduction How To Use This Workbook What's New Future developments. Turbotax deluxe federal e file 2012 for pc download  The IRS has created a page on IRS. Turbotax deluxe federal e file 2012 for pc download gov for information about Publication 584, at www. Turbotax deluxe federal e file 2012 for pc download irs. Turbotax deluxe federal e file 2012 for pc download gov/pub584. Turbotax deluxe federal e file 2012 for pc download Information about any future developments affecting Publication 584 (such as legislation enacted after we release it) will be posted on that page. Turbotax deluxe federal e file 2012 for pc download Introduction This workbook is designed to help you figure your loss on personal-use property in the event of a disaster, casualty, or theft. Turbotax deluxe federal e file 2012 for pc download It contains schedules to help you figure the loss to your main home, its contents, and your motor vehicles. Turbotax deluxe federal e file 2012 for pc download However, these schedules are for your information only. Turbotax deluxe federal e file 2012 for pc download You must complete Form 4684, Casualties and Thefts, to report your loss. Turbotax deluxe federal e file 2012 for pc download How To Use This Workbook You can use this workbook by following these five steps. Turbotax deluxe federal e file 2012 for pc download Read Publication 547 to learn about the tax rules for casualties, disasters, and thefts. Turbotax deluxe federal e file 2012 for pc download Know the definitions of cost or other basis and fair market value, discussed later. Turbotax deluxe federal e file 2012 for pc download Fill out Schedules 1 through 20. Turbotax deluxe federal e file 2012 for pc download Read the instructions for Form 4684. Turbotax deluxe federal e file 2012 for pc download Fill out Form 4684 using the information you entered in Schedules 1 through 20. Turbotax deluxe federal e file 2012 for pc download Use the chart below to find out how to use Schedules 1 through 19 to fill out Form 4684. Turbotax deluxe federal e file 2012 for pc download Take what's in each row of. Turbotax deluxe federal e file 2012 for pc download . Turbotax deluxe federal e file 2012 for pc download . Turbotax deluxe federal e file 2012 for pc download And enter it on Form 4684. Turbotax deluxe federal e file 2012 for pc download . Turbotax deluxe federal e file 2012 for pc download . Turbotax deluxe federal e file 2012 for pc download Column 1 Line 1 Column 2 Line 2 Column 3 Line 3 Column 4 Line 4 Column 5 Line 5 Column 6 Line 6 Column 7 Line 7 Column 8 Line 8 Column 9 Line 9 Prev  Up  Next   Home   More Online Publications