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Unemployed And Taxes

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Unemployed And Taxes

Unemployed and taxes Index A Abandonment, Abandonment Accounting method Accrual, Accrual Method Cash, Cash Method Change in, Changes in Methods of Accounting Crop, Crop method. Unemployed and taxes Farm inventory, Farm Inventory Accounting periods, Introduction Accrual method of accounting, Accrual Method Additional Medicare Tax withholding, What's New for 2013, Additional Medicare Tax. Unemployed and taxes Adjusted basis for installment sale, Adjusted basis for installment sale purposes. Unemployed and taxes Adjusted basis of assets, Adjusted Basis Agricultural activity codes, Schedule F, Reminders Agricultural program payments, Agricultural Program Payments Agricultural structure, defined, Agricultural structure. Unemployed and taxes Alternative Depreciation System (ADS), Required use of ADS. Unemployed and taxes , ADS election. Unemployed and taxes Amortization Going into business, Business Start-Up Costs Reforestation expenses, Reforestation Costs Section 197 intangibles, Section 197 Intangibles Assessments By conservation district, Assessment by Conservation District Depreciable property, Assessment for Depreciable Property Assistance (see Tax help) Automobiles, depreciation, Limits for passenger automobiles. Unemployed and taxes B Bankruptcy, Bankruptcy. Unemployed and taxes Barter income, Barter income. Unemployed and taxes Basis Adjusted, Adjusted basis. Unemployed and taxes Installment sale, Adjusted basis for installment sale purposes. Unemployed and taxes Involuntary conversion, Basis for depreciation. Unemployed and taxes Like-kind exchange, Basis for depreciation. Unemployed and taxes Partner's basis, Property Distributed From a Partnership or Corporation Replacement property, Basis of replacement property. Unemployed and taxes Shareholder's basis, Property Distributed From a Partnership or Corporation Basis of assets Adjusted basis, Adjusted Basis Allocating to several assets, Allocating the Basis Changed to business use, Property changed from personal to business or rental use. Unemployed and taxes Constructing assets, Constructing assets. Unemployed and taxes Cost, Cost Basis Decreases, Decreases to Basis Depreciation, What Is the Basis for Depreciation? Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Gifts, Property Received as a Gift Increases, Increases to Basis Real property, Real Property Received for services, Property received for services. Unemployed and taxes Uniform capitalization rules, Uniform Capitalization Rules Below-market loans, Below-market loans. Unemployed and taxes Books and records, Importance of Records Breeding fees, Breeding Fees Business income limit, section 179 expense deduction, Business Income Limit Business use of home, Business Use of Your Home C Canceled debt, Cancellation of Debt Capital assets, Capital Assets Capital expenses, Capital Expenses Car expenses, Truck and Car Expenses Cash method of accounting, Cash Method Casualties and thefts Adjustments to basis, Adjustments to basis. Unemployed and taxes Casualty, defined, Casualty. Unemployed and taxes Disaster area losses, Disaster Area Losses Leased property, Leased property. Unemployed and taxes Livestock, Livestock or produce bought for resale. Unemployed and taxes , Raised draft, breeding, dairy, or sporting animals. Unemployed and taxes Reimbursement, Insurance and other reimbursements. Unemployed and taxes Reporting gains and losses, Reporting Gains and Losses Theft, defined, Theft. Unemployed and taxes Change in accounting method, Changes in Methods of Accounting Chickens, purchased, Chickens, seeds, and young plants. Unemployed and taxes Christmas trees, Christmas tree cultivation. Unemployed and taxes , Christmas trees. Unemployed and taxes Club dues, Club dues and membership fees. Unemployed and taxes Comments on publication, Comments and suggestions. Unemployed and taxes Commodity Futures, Hedging (Commodity Futures) Wages, Noncash wages. Unemployed and taxes Commodity Credit Corporation (CCC) Loans, Commodity Credit Corporation (CCC) Loans Market gain, Market Gain Community property, Community property. Unemployed and taxes , Community property. Unemployed and taxes Computer, software, Computer software. Unemployed and taxes Condemnation, Casualties, Thefts, and Condemnations, Condemnation Conservation Cost-sharing exclusion, Conservation Expenses District assessments, Assessment by Conservation District Expenses, Conservation Expenses Plans, Conservation plan. Unemployed and taxes Conservation Reserve Program, Conservation Reserve Program (CRP) payments. Unemployed and taxes Conservation Reserve Program (CRP), Conservation Reserve Program (CRP) Constructing assets, Constructing assets. Unemployed and taxes Constructive receipt of income, Constructive receipt. Unemployed and taxes Contamination, Soil or other environmental contamination. Unemployed and taxes Contract price, Contract price. Unemployed and taxes Converted wetland, Converted Wetland and Highly Erodible Cropland Cooperatives, income from, Income From Cooperatives Cost-sharing exclusion, Cost-Sharing Exclusion (Improvements) Counter-cyclical payments, Direct payments and counter-cyclical payments. Unemployed and taxes , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Credits Employment, Employment Credits Fuel tax, Fuel tax credit and refund. Unemployed and taxes , How To Claim a Credit or Refund, Claiming a Credit Social security and Medicare, Earning credits in 2013. Unemployed and taxes Social security coverage, How to become insured under social security. Unemployed and taxes State unemployment tax, Tax rate and credit. Unemployed and taxes Crew leaders, Crew Leaders Crop Destroyed, Standing crop destroyed by casualty. Unemployed and taxes Insurance proceeds, Crop Insurance and Crop Disaster Payments Method of accounting, Crop method. Unemployed and taxes Shares, Rents (Including Crop Shares) Unharvested, Cost of raising unharvested crops. Unemployed and taxes , Section 1231 transactions. Unemployed and taxes , Gain or loss. Unemployed and taxes Cropland, highly erodible, Converted Wetland and Highly Erodible Cropland D Damage Casualties and thefts, Casualties and Thefts Crop insurance, Crop Insurance and Crop Disaster Payments Tree seedlings, Tree Seedlings Debt Bad, Nonbusiness bad debt. Unemployed and taxes Canceled, Cancellation of Debt, Canceled debt excluded from income. Unemployed and taxes , Cancellation of debt. Unemployed and taxes , Canceled debt. Unemployed and taxes Nonrecourse, Amount realized on a nonrecourse debt. Unemployed and taxes Qualified farm, Qualified Farm Debt Qualified principal residence, Qualified Principal Residence Debt Recourse, Amount realized on a recourse debt. Unemployed and taxes Depletion, Depletion Depreciation, Claiming the Special Depreciation Allowance ADS election, ADS election. Unemployed and taxes Conservation assets, Depreciable conservation assets. Unemployed and taxes Deduction, Overview of Depreciation Incorrect amount deducted, How Do You Correct Depreciation Deductions? Limit for automobiles, Limits for passenger automobiles. Unemployed and taxes Listed property, Additional Rules for Listed Property Raised livestock, Livestock. Unemployed and taxes Recapture, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Section 1250 Property When to file, Do You Have To File Form 4562? Depreciation allowable, Basis adjustment for depreciation allowed or allowable. Unemployed and taxes Depreciation allowed, Basis adjustment for depreciation allowed or allowable. Unemployed and taxes Direct payments, Direct payments and counter-cyclical payments. Unemployed and taxes , Payments Under the Farm Security and Rural Investment Act of 2002 and Under the Food, Conservation, and Energy Act of 2008 Disaster area losses, Disaster Area Losses Disaster payments, Crop Insurance and Crop Disaster Payments Disaster relief grants, Federal disaster relief grants. Unemployed and taxes Disaster relief payments, Qualified disaster relief payments. Unemployed and taxes Dispositions, Sale or other disposal of land during 9-year period. Unemployed and taxes , Gain on sale of farmland. Unemployed and taxes , Introduction Domestic production activities deduction, Domestic Production Activities Deduction Dyed diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Dyed kerosene, Dyed Diesel Fuel and Dyed Kerosene E e-file, Reminders Easement, Easements and rights-of-way. Unemployed and taxes , Easements. Unemployed and taxes Election ADS depreciation, Electing ADS. Unemployed and taxes , ADS election. Unemployed and taxes Amortization Business start-up costs, Business Start-Up Costs Reforestation costs, Reforestation Costs Crop method, Election to use crop method. Unemployed and taxes Cutting of timber, Election to treat cutting as a sale or exchange. Unemployed and taxes Deducting conservation expenses, When to Deduct or Capitalize Not excluding cost-sharing payments, Electing not to exclude payments. Unemployed and taxes Out of installment method, Electing out of the installment method. Unemployed and taxes Postponing casualty gain, Postponing Gain Postponing reporting crop insurance proceeds, Election to postpone reporting until the following year. Unemployed and taxes Section 179 expense deduction, How Do You Elect the Deduction? Electronic filing, Reminders Embryo transplants, Transplanted embryo. Unemployed and taxes Employer identification number, Reminders, Employer identification number (EIN). Unemployed and taxes Endangered species recovery expenses, Endangered species recovery expenses. Unemployed and taxes Environmental contamination, Soil or other environmental contamination. Unemployed and taxes Estimated tax Farm gross income, Gross Income From Farming Gross income, Gross Income Penalties, Estimated Tax Penalty for 2013 Exchanges Basis Like-kind, Like-Kind Exchanges Nontaxable, Nontaxable Exchanges Partially nontaxable, Partially Nontaxable Exchanges Taxable, Taxable Exchanges Like-kind, Like-Kind Exchanges Nontaxable, Like-Kind Exchanges Excise taxes Credit, Claiming a Credit Diesel fuel, Dyed Diesel Fuel and Dyed Kerosene Farming purposes, Fuels Used in Farming Home use of fuels, Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines Off-highway uses, Fuels Used in Off-Highway Business Use Refund, Claiming a Refund F Fair market value defined, Fair market value (FMV). Unemployed and taxes , Fair market value (FMV). Unemployed and taxes Family member Business expenses, Special rule for related persons. Unemployed and taxes Installment sale, Sale to a related person. Unemployed and taxes Like-kind exchange, Like-kind exchanges between related persons. Unemployed and taxes Loss on sale or exchange of property, Losses from sales or exchanges between related persons. Unemployed and taxes Personal-use property, Personal-use property. Unemployed and taxes Social security coverage, Family Employees Farm Business expenses, Farm Business Expenses Business, defined, Business of Farming Defined, Farm defined. Unemployed and taxes , Farm. Unemployed and taxes Income averaging, Income Averaging for Farmers Rental, Farm rental. Unemployed and taxes Sale of, Sale of a Farm Farmer, Farmer. Unemployed and taxes Federal unemployment tax (FUTA), Federal Unemployment (FUTA) Tax Fertilizer, Fertilizer and Lime, Fertilizer and Lime Foreclosure, Foreclosure or Repossession Forestation costs, Forestation and reforestation costs. Unemployed and taxes Form 1099-A, Form 1099-A. Unemployed and taxes , Forms 1099-A and 1099-C. Unemployed and taxes 1099-C, Cancellation of Debt, Form 1099-C. Unemployed and taxes , Forms 1099-A and 1099-C. Unemployed and taxes 1099-G, Market Gain, Payment to More Than One Person 1099-MISC, Reminders, Nonemployee compensation. Unemployed and taxes 1099-PATR, Form 1099-PATR. Unemployed and taxes 1128, Introduction 2210-F, Estimated Tax Penalty for 2013 3115, Changes in Methods of Accounting 4136, Claiming a Credit 4562, Do You Have To File Form 4562? 4797, Form 4797. Unemployed and taxes , Recapture. Unemployed and taxes , Reporting the exchange. Unemployed and taxes 4835, Rents (Including Crop Shares) 5213, Using the presumption later. Unemployed and taxes 6252, Form 6252. Unemployed and taxes 8822, Reminders 8824, Reporting the exchange. Unemployed and taxes 8849, Claiming a Refund 8886, Reminders 940, Form 940. Unemployed and taxes 943, Form 943. Unemployed and taxes 982, Form 982 I-9, Form I-9. Unemployed and taxes SS-4, Reminders, Employer identification number (EIN). Unemployed and taxes SS-5, Obtaining a social security number. Unemployed and taxes T (Timber), Form T (Timber). Unemployed and taxes W-2, Form W-2. Unemployed and taxes W-4, Reminders, New hire reporting. Unemployed and taxes , Form W-4. Unemployed and taxes W-4V, Commodity Credit Corporation (CCC) Loans, Crop Insurance and Crop Disaster Payments W-7, Obtaining an individual taxpayer identification number. Unemployed and taxes Free tax services, How To Get Tax Help, Free help with your tax return. Unemployed and taxes Fuel tax credit or refund, Fuel tax credit and refund. Unemployed and taxes , How To Claim a Credit or Refund G Gains and losses Basis of assets, Cost Basis Capital assets, defined, Capital Assets Casualty, How To Figure a Loss, Figuring a Gain Installment sales, Installment Sales Livestock, Livestock Long- or short-term, Long and Short Term Ordinary or capital, Ordinary or Capital Gain or Loss Sale of farm, Sale of a Farm Section 1231, Section 1231 Gains and Losses Theft, How To Figure a Loss, Figuring a Gain Timber, Timber General asset accounts, How Do You Use General Asset Accounts? Gifts, Crop shares you give to others (gift). Unemployed and taxes , Cost related to gifts. Unemployed and taxes , Property Received as a Gift, Gift. Unemployed and taxes Going into business, Business Start-Up Costs Grants, disaster relief, Federal disaster relief grants. Unemployed and taxes Gross profit percentage, Gross profit percentage. Unemployed and taxes Gross profit, defined, Gross profit. Unemployed and taxes Guarantee, Debt not payable on demand. Unemployed and taxes H Health insurance deduction, Self-employed health insurance deduction. Unemployed and taxes Hedging, Hedging (Commodity Futures) Help (see Tax help) Highway use tax, Highway use tax. Unemployed and taxes Holding period, Holding period. Unemployed and taxes Horticultural structure, Horticultural structure. Unemployed and taxes I Illegal irrigation subsidy, Illegal federal irrigation subsidy. Unemployed and taxes Important dates, Important Dates for 2014 Improvements, Cost-Sharing Exclusion (Improvements) Income Accounting for, Accounting Methods Accrual method of accounting, Income Canceled debt excluded, Cancellation of Debt From farming, Farm Income, Gross income from farming. Unemployed and taxes , Gross Income From Farming Gross, Gross Income Not-for-profit farming, Not-for-Profit Farming Pasture, Pasture income and rental. Unemployed and taxes Schedule F, Farm Income Withholding of tax, Federal Income Tax Withholding Income averaging (see Farm: Income averaging) Incorrect amount of depreciation deducted, How Do You Correct Depreciation Deductions? Individual taxpayer identification number (ITIN), Obtaining an individual taxpayer identification number. Unemployed and taxes Inherited property, Inherited Property Insolvency, Insolvency. Unemployed and taxes Installment sales, Form 6252. Unemployed and taxes Electing out, Electing out of the installment method. Unemployed and taxes Farm, sale of, Installment Sale of a Farm Figuring income, Figuring Installment Sale Income Reporting income, Form 6252. Unemployed and taxes Unstated interest, Unstated interest. Unemployed and taxes Insurance, Insurance, Self-employed health insurance deduction. Unemployed and taxes Intangible property, Section 197 Intangibles Interest Expense, Interest Income, Interest income. Unemployed and taxes Unstated, Unstated interest. Unemployed and taxes Inventory Items included, Farm Inventory Methods of valuation, Inventory valuation methods. Unemployed and taxes Involuntary conversions, Involuntary Conversions, Property acquired in a like-kind exchange or involuntary conversion. Unemployed and taxes , Introduction Irrigation Illegal subsidy, Illegal federal irrigation subsidy. Unemployed and taxes Project, Irrigation Project L Labor hired, Labor Hired Landlord participation, Landlord Participation in Farming Lease or purchase, Lease or Purchase Life tenant (see Term interests) Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges Lime, Fertilizer and Lime Limits At-risk, At-Risk Limits Business use of home, Deduction limit. Unemployed and taxes Capital losses, Treatment of Capital Losses Conservation expenses, Assessment for Depreciable Property, 25% Limit on Deduction Depreciation Business-use, What Is the Business-Use Requirement? Excluded farm debt, Exclusion limit. Unemployed and taxes Farm losses, Losses From Operating a Farm Loss of personal-use property, Deduction Limits on Losses of Personal-Use Property Not-for-profit farming, Not-for-Profit Farming Passive activity, Passive Activity Limits Percentage depletion, Taxable income limit. Unemployed and taxes Prepaid farm supplies, Deduction limit. Unemployed and taxes Reforestation costs, Reforestation Costs Section 179 expense deduction Automobile, Limits for passenger automobiles. Unemployed and taxes Business income, Business Income Limit Dollar, Dollar Limits Time to keep records, How Long To Keep Records Listed property Defined, What Is Listed Property? Passenger automobile, Passenger automobiles. Unemployed and taxes Rules, Additional Rules for Listed Property Livestock, Section 1231 transactions. Unemployed and taxes Casualty and theft losses, Livestock or produce bought for resale. Unemployed and taxes Crop shares, Crop shares you use to feed livestock. Unemployed and taxes Depreciation, Livestock. Unemployed and taxes Diseased, Diseased livestock. Unemployed and taxes Feed assistance, Feed Assistance and Payments Immature, Immature livestock. Unemployed and taxes Losses, Loss of livestock. Unemployed and taxes , Livestock Purchased, Purchased livestock. Unemployed and taxes Raised, Raised livestock. Unemployed and taxes Sale of, Sales of Farm Products, Livestock Unit-livestock-price, inventory valuation, Unit-livestock-price method. Unemployed and taxes Used in a farm business, Livestock used in farm business. Unemployed and taxes Weather-related sales, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. Unemployed and taxes Loans, Commodity Credit Corporation (CCC) Loans, Loan expenses. Unemployed and taxes Losses At-risk limits, At-Risk Limits Casualty, Casualties, Thefts, and Condemnations Disaster areas, Disaster Area Losses Farming, Farming Losses Growing crops, Loss of growing plants, produce, and crops. Unemployed and taxes Hobby farming, Not-for-Profit Farming Livestock, Livestock, Diseased livestock. Unemployed and taxes Nondeductible, Other Nondeductible Items Theft, Casualties, Thefts, and Condemnations Lost income payments, Lost income payments. Unemployed and taxes Lost property, Mislaid or lost property. Unemployed and taxes M MACRS property Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. Unemployed and taxes Like-kind exchange, Property acquired in a like-kind exchange or involuntary conversion. Unemployed and taxes Nontaxable transfer, Property acquired in a nontaxable transfer. Unemployed and taxes Market gain, reporting, Market Gain Marketing quota penalties, Marketing Quota Penalties Material participation, Landlord Participation in Farming Meals, Meals. Unemployed and taxes Membership fees, Club dues and membership fees. Unemployed and taxes Methods of accounting, Accounting Methods Modified ACRS (MACRS) ADS election, ADS election. Unemployed and taxes Conventions, Which Convention Applies? Depreciation methods, Which Depreciation Method Applies? Exchange, Property acquired in a like-kind exchange or involuntary conversion. Unemployed and taxes Figuring the deduction, How Is the Depreciation Deduction Figured? Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion. Unemployed and taxes Nontaxable transfer, Property acquired in a nontaxable transfer. Unemployed and taxes Percentage tables, Rules for using the tables. Unemployed and taxes Property classes, Which Property Class Applies Under GDS? Recovery periods, Which Recovery Period Applies? N New hire reporting, New hire reporting. Unemployed and taxes Noncapital asset, Noncapital Assets Nontaxable exchanges, Like-Kind Exchanges Nontaxable transfer of MACRS property, Property acquired in a nontaxable transfer. Unemployed and taxes Not-for-profit farming, Not-for-Profit Farming O Organizational costs, Business start-up and organizational costs. Unemployed and taxes P Partners, limited, Limited partner. Unemployed and taxes Partners, retired, Retired partner. Unemployed and taxes Partners, Spouse, Business Owned and Operated by Spouses. Unemployed and taxes Partnership, Partnership income or loss. Unemployed and taxes Passenger automobile, Passenger automobiles. Unemployed and taxes Pasture income, Pasture income and rental. Unemployed and taxes Patronage dividends, Patronage Dividends Payments considered received, Payments Received or Considered Received Payments received, Payments Received or Considered Received Penalties Estimated tax, Estimated Tax Penalty for 2013 Returns, Estimated Tax Penalty for 2013 Trust fund recovery, Trust fund recovery penalty. Unemployed and taxes Per-unit retain certificates, Per-Unit Retain Certificates Personal expenses, Personal, Living, and Family Expenses Placed in service, Placed in Service, What Is the Placed-in-Service Date? Postponing casualty gain, Postponing Gain Prepaid expense Advance premiums, Advance premiums. Unemployed and taxes Extends useful life, Prepayment. Unemployed and taxes Farm supplies, Prepaid Farm Supplies Livestock feed, Prepaid Livestock Feed Prizes, Prizes. Unemployed and taxes Produce, Sales of Farm Products Property Changed to business use, Property changed from personal to business or rental use. Unemployed and taxes Received for services, Property received for services. Unemployed and taxes Repairs and improvements, How Do You Treat Repairs and Improvements? Section 1231, Section 1231 transactions. Unemployed and taxes Section 1245, Section 1245 Property Section 1250, Section 1250 Property Section 1252, Section 1252 property. Unemployed and taxes Section 1255, Section 1255 property. Unemployed and taxes Tangible personal, Tangible personal property. Unemployed and taxes Publications (see Tax help) Q Qualified disaster relief payments, Qualified disaster relief payments. Unemployed and taxes Qualified farm debt, Qualified Farm Debt Qualified joint venture, Qualified joint venture. Unemployed and taxes Qualified principal residence debt, Qualified Principal Residence Debt R Recapture Amortization, Depreciation and amortization. Unemployed and taxes Basis reductions, Recapture of basis reductions. Unemployed and taxes Certain depreciation, Recapture of certain depreciation. Unemployed and taxes Cost-sharing payments, Recapture. Unemployed and taxes Depreciation, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Depreciation recapture. Unemployed and taxes Section 1245 property, Section 1245 Property Section 1250 property, Section 1250 Property Section 179 expense deduction, When Must You Recapture the Deduction? Section 179 GO Zone property, Recapture for qualified section 179 GO Zone property. Unemployed and taxes Special depreciation allowance, When Must You Recapture an Allowance Recordkeeping, Importance of Records, Meals. Unemployed and taxes Records on depreciable property, Depreciation Recapture Reforestation costs, Forestation and reforestation costs. Unemployed and taxes , Reforestation Costs Refund Deduction taken, Refund or reimbursement. Unemployed and taxes Fuel tax, Fuel tax credit and refund. Unemployed and taxes , Including the Credit or Refund in Income Reimbursements Casualties and thefts, Casualty and theft losses. Unemployed and taxes , Casualties and Thefts, Insurance and other reimbursements. Unemployed and taxes Deduction taken, Refund or reimbursement. Unemployed and taxes Expenses, Reimbursed expenses. Unemployed and taxes Feed assistance, Feed Assistance and Payments Real estate taxes, Real estate taxes. Unemployed and taxes Reforestation expenses, Qualifying costs. Unemployed and taxes To employees, Reimbursements to employees. Unemployed and taxes Related persons, Special rule for related persons. Unemployed and taxes , Losses from sales or exchanges between related persons. Unemployed and taxes , Special rules for related persons. Unemployed and taxes , Like-kind exchanges between related persons. Unemployed and taxes , Sale to a related person. Unemployed and taxes , Buying replacement property from a related person. Unemployed and taxes , Related persons. Unemployed and taxes Rental income, Rents (Including Crop Shares) Rented property, improvements, Improvements to rented property. Unemployed and taxes Repairs, Repairs and Maintenance Repairs and improvements, How Do You Treat Repairs and Improvements? Repayment of income, Repayment of income. Unemployed and taxes Replacement Period, Replacement Period Property, Replacement Property Reportable transactions. Unemployed and taxes , Reminders Repossessions, Foreclosure or Repossession Right-of-way income, Easements and rights-of-way. Unemployed and taxes S Sale of home, Sale of your home. Unemployed and taxes Section 179 expense deduction, Section 179 Expense Deduction How to elect, How Do You Elect the Deduction? Listed property, Additional Rules for Listed Property Qualifying property, What Property Qualifies? Recapture, When Must You Recapture the Deduction? Self-employed health insurance, Self-employed health insurance deduction. Unemployed and taxes Self-employed health insurance deduction, Self-employed health insurance deduction. Unemployed and taxes Self-employment tax Community property, Community property. Unemployed and taxes Deduction, Deduction for employer-equivalent portion of self-employment tax. Unemployed and taxes How to pay, How To Pay Self-Employment Tax Landlord participation, Landlord Participation in Farming Material participation, Material participation for landlords. Unemployed and taxes Maximum net earnings, What's New for 2013 Methods for figuring net earnings, Methods for Figuring Net Earnings Optional method, Farm Optional Method Regular method, Regular Method Rental income, Landlord Participation in Farming Reporting, Reporting Self-Employment Tax Self-employment tax rate, Self-employment tax rate. Unemployed and taxes Share farming, Share farmer. Unemployed and taxes Tax rates, What's New for 2013 Who must pay, Who Must Pay Self-Employment Tax? Selling expenses, Selling expenses. Unemployed and taxes Selling price Defined, Selling price. Unemployed and taxes Reduced, Selling price reduced. Unemployed and taxes Settlement costs (fees), Settlement costs. Unemployed and taxes Social security and Medicare Credits of coverage, Earning credits in 2013. Unemployed and taxes Withholding of tax, Social Security and Medicare Taxes Social security number, Obtaining a social security number. Unemployed and taxes Software, computer, Computer software. Unemployed and taxes Soil Conservation, Conservation Expenses Contamination, Soil or other environmental contamination. Unemployed and taxes Special depreciation allowance How to elect not to claim, How Can You Elect Not To Claim the Allowance? Recapture, When Must You Recapture an Allowance Standard mileage rate, Standard mileage rate. Unemployed and taxes Start-up costs for businesses, Business start-up and organizational costs. Unemployed and taxes Suggestions for publication, Comments and suggestions. Unemployed and taxes T Tangible personal property, Tangible personal property. Unemployed and taxes Tax help, How To Get Tax Help Tax preparation fees, Tax preparation fees. Unemployed and taxes Tax shelter At-risk limits, At-Risk Limits Defined, Tax shelter. Unemployed and taxes Tax-free exchanges, Like-Kind Exchanges Taxes Excise, Excise Taxes Federal use, Highway use tax. Unemployed and taxes General, Taxes Self-employment, Self-Employment Tax State and federal, State and federal income taxes. Unemployed and taxes State and local general sales, State and local general sales taxes. Unemployed and taxes Withholding, Federal income tax withholding. Unemployed and taxes , Social Security and Medicare Taxes, Federal Income Tax Withholding Telephone expense, Telephone expense. Unemployed and taxes Tenant house expenses, Tenant House Expenses Term interests, Certain term interests in property. Unemployed and taxes Theft losses, Casualties, Thefts, and Condemnations Timber, Timber. Unemployed and taxes , Timber Depletion, Timber Tobacco quota buyout payments, Tobacco Quota Buyout Program Payments Tobacco settlement payments, National Tobacco Growers' Settlement Trust Fund Payments Trade-in, Sale and Purchase Travel expenses, Travel Expenses Truck expenses, Truck and Car Expenses Trust fund recovery penalty, Trust fund recovery penalty. Unemployed and taxes TTY/TDD information, How To Get Tax Help U Uniform capitalization rules Basis of assets, Uniform Capitalization Rules Inventory, Uniform capitalization rules. Unemployed and taxes Unstated interest, Unstated interest. Unemployed and taxes W Wages and salaries, Wages and salaries. Unemployed and taxes Water conservation, Conservation Expenses Water well, Water well. Unemployed and taxes , Water wells. Unemployed and taxes Weather-related sales, livestock, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock. Unemployed and taxes Withholding Income tax, Federal Income Tax Withholding Social security and Medicare tax, Social Security and Medicare Taxes Prev  Up     Home   More Online Publications
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Know Your Rights

If you want to reduce the amount of debt, you can do some work on your own. First, develop a realistic budget so you can see your income and expenses in one place and look for ways to save money. You can get help for help in creating a budget online. Also, contact your creditors and inform them that you are having difficulty making payments; they may be able to modify your payment plan.

The Fair Debt Collection Practices Act applies to those who collect debts owed to creditors for personal, family and household debts. These include car loans, mortgages, charge accounts and money owed for medical bills. A debt collector is someone hired to collect money you owe.

Within five days after a debt collector first contacts you, the collector must send you a notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you don't owe the money.

If you owe the money or part of it, contact the creditor to arrange for payment.

If you believe you don't owe the money, contact the creditor in writing and send a copy to the collection agency with a letter telling them not to contact you. A debt collector may not:

  • Contact you at unreasonable times, for example, before 8 am or after 9 pm, unless you agree.
  • Contact you at work if you tell the debt collector your employer disapproves.
  • Contact you after you write a letter telling them to stop, except to notify you if the collector or creditor plans to take a specific action.
  • Contact your friends, relatives, employer or others, except to find out where you live and work.
  • Harass you with repeated telephone calls, profane language, or threats to harm you.
  • Make any false statement, or claim that you will be arrested.
  • Threaten to have money deducted from your paycheck or sue you, unless the collection agency or creditor intends to do so and it is legal.

To file a complaint, contact your local consumer protection office, Consumer Financial Protection Bureau and the Federal Trade Commission.

Debt Collection Emails

When communicating with consumers through email, debt collectors must observe the Fair Debt Collection Practices Act (FDCPA). It is important for you and creditors or collection agencies to save and store copies of all communication, which will be important if there is as disagreement later.

To take steps towards maintaining privacy, conduct all communications via email using either secure email platforms or industry-specific communication platforms. Never give a workplace email account as a contact address, as there is no legal expectation of privacy for a workplace email account.

The Unemployed And Taxes

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