Instructions For Form 4684 - Casualties And Thefts

you received the property and include

Special rules apply to property received

Schedule K, line 11. Electing large

the day the casualty or theft occurred.

as a gift or inheritance. See Pub. 551

partnerships, enter on Form 1065-B,

for details.

Part II, line 11. S corporations, enter on

Line 17

Form 1120S, Schedule K, line 10. Next

Line 21

Estates and trusts figure adjusted gross

to that line, write “Form 4684.”

income in the same way as individuals,

See the instructions for line 3.

Line 33

except that the costs of administration

Line 22

are allowed in figuring adjusted gross

If you had a casualty or theft gain from

See the instructions for line 4.

income.

certain trade, business, or

income-producing property held more

Lines 23 and 24

Section B—Business and

than 1 year, you may have to recapture

See the instructions for lines 5 and 6 for

Income-Producing Property

part or all of the gain as ordinary

details on determining FMV.

income. See the instructions for Form

Use a separate column of Part I, lines

Loss on each item figured

4797, Part III, for more information on

19 through 27, to show each item lost

separately. Unlike a casualty loss to

the types of property subject to

or damaged from a single casualty or

personal use real estate, in which all

recapture. If recapture applies,

theft. If more than four items were lost

improvements are considered one item,

complete Form 4797, Part III, and this

or damaged, use additional sheets

a casualty loss to business or

line, instead of Form 4684, line 34.

following the format of Part I, lines 19

income-producing property must be

through 27.

Line 38a

figured separately for each item. For

Use a separate Section B, Part I, of

example, if casualty damage occurs to

Taxpayers, other than partnerships and

Form 4684 for each casualty or theft

both a building and to trees on the

S corporations, if Form 4797 is not

involving property used in a trade or

same piece of real estate, measure the

otherwise required, enter the amount

business or for income-producing

loss separately for the building and for

from this line on page 1 of your tax

purposes. Use one Section B, Part II, to

the trees.

return, on the line identified as from

combine all Sections B, Part I.

Form 4797. Next to that line, write

Line 28

For details on the treatment of

“Form 4684.”

If the amount on line 28 includes losses

casualties or thefts to business or

on property held 1 year or less, and

income-producing property, including

Paperwork Reduction Act Notice.

losses on property held for more than 1

rules on the loss of inventory through

We ask for the information on this form

year, you must allocate the amount

casualty or theft, see Pub. 547.

to carry out the Internal Revenue laws

between lines 29 and 34 according to

If you had a casualty or theft loss

of the United States. You are required

how long you held each property. Enter

involving a home you used for business

to give us the information. We need it to

on line 29 all gains and losses on

or rented out, your deductible loss may

ensure that you are complying with

property held 1 year or less. Enter on

be limited. First, complete Form 4684,

these laws and to allow us to figure and

line 34 all gains and losses on property

Section B, lines 19 through 26. If the

collect the right amount of tax.

held more than 1 year, except as

loss involved a home used for a

provided in the instructions for line 33.

You are not required to provide the

business for which you are filing

information requested on a form that is

Part II, Column (a)

Schedule C (Form 1040), Profit or

subject to the Paperwork Reduction Act

Loss From Business, figure your

Use a separate line for each casualty or

unless the form displays a valid OMB

deductible casualty or theft loss on

theft.

control number. Books or records

Form 8829, Expenses for Business

relating to a form or its instructions

Part II, Column (b)(i)

Use of Your Home. Enter on line 27 of

must be retained as long as their

Form 4684 the deductible loss from line

Enter the part of line 28 from trade,

contents may become material in the

33 of Form 8829, and write “See Form

business, rental, or royalty property

administration of any Internal Revenue

8829” above line 27. For a home you

(other than property you used in

law. Generally, tax returns and return

rented out or used for a business for

performing services as an employee).

information are confidential, as required

which you are not filing Schedule C

Part II, Column (b)(ii)

by section 6103.

(Form 1040), see section 280A(c)(5) to

Enter the part of line 28 from

The time needed to complete and

figure your deductible loss. Attach a

income-producing property and from

file this form will vary depending on

statement showing your computation of

property you used in performing

individual circumstances. The

the deductible loss, enter that amount

services as an employee.

estimated average time is:

on line 27, and write “See attached

Income-producing property is property

statement” above line 27.

Recordkeeping . . . . . . . . 1 hr., 58 min.

held for investment, such as stocks,

notes, bonds, gold, silver, vacant lots,

Learning about the law or

Note: A gain or loss from a casualty or

and works of art.

the form . . . . . . . . . . . . .

26 min.

theft of property used in a passive

Line 31

Preparing the form . . . . . 1 hr., 4 min.

activity is not taken into account in

determining the loss from a passive

If Form 4797, Sales of Business

Copying, assembling,

activity unless losses similar in cause

Property, is not otherwise required,

and sending the form to

and severity recur regularly in the

enter the amount from this line on page

the IRS . . . . . . . . . . . . . .

34 min.

activity. See Form 8582, Passive

1 of your tax return, on the line

Activity Loss Limitations, and its

If you have comments concerning

identified as from Form 4797. Next to

instructions for details.

the accuracy of these time estimates or

that line, write “Form 4684.”

suggestions for making this form

Line 20

Line 32

simpler, we would be happy to hear

Cost or adjusted basis usually means

Estates and trusts, enter on the “Other

from you. See the instructions for the

original cost plus improvements, minus

deductions” line of your tax return.

tax return with which this form is filed.

depreciation allowed or allowable

Partnerships (except electing large

(including any section 179 expense

partnerships), enter on Form 1065,

deduction), amortization, depletion, etc.

-4-

Instructions For Form 4684 - Casualties And Thefts - 2002 Page 4

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