Instructions For Form 4684 - Casualties And Thefts

year. This rule applies to partnerships and S

occurred in the area where you live. The

complete Form 4684 and Schedule A using

corporations at both the entity and partner or

area where you lived was designated by the

the usual calculations applicable to casualty

shareholder level.

Federal Emergency Management Agency

and theft losses. Don’t follow the special

(FEMA) to be eligible for public or individual

rules about qualified disaster losses for lines

For details on how to postpone the gain,

assistance (or both). You immediately filed a

11 and 15 , later. For the latest information

see Pub. 547.

claim for reimbursement with your insurance

about the developments related to Form

If your main home was located in a

company. There was a reasonable prospect

4684 and its instructions, such as legislation

disaster area and that home or any of its

that you would recover the full amount of

enacted after they were published, go to

contents were damaged or destroyed due to

your loss. The claim was settled in January

IRS.gov/Form4684.

the disaster, special rules apply. See

Gains

2018 when your insurance company

Realized on Homes in Disaster

Areas, later.

Election to deduct loss in the preceding

reimbursed you for only half of your loss. The

disaster year is 2018 (not 2017 when the

year. If you have a casualty loss from a

When To Deduct a Loss

federally declared disaster that occurred in

loss occurred). Your loss was sustained in

an area warranting public or individual

2018 because that’s when it became

Deduct the part of your casualty or theft loss

reasonably certain whether you would be

assistance (or both), you can elect to deduct

that isn't reimbursable in the tax year the

the loss in the tax year immediately before

reimbursed. You can either deduct the

casualty occurred or the theft was

the disaster year. A list of areas warranting

unreimbursed loss on your tax return for the

discovered. However, a disaster loss and a

public or individual assistance (or both) is

disaster year (2018) or make an election to

loss from deposits in insolvent or bankrupt

available at the FEMA website at

FEMA.gov/

deduct the unreimbursed loss on your tax

financial institutions may be treated

Disasters.

return for the preceding year (2017).

differently. See

Disaster Losses

and

Special

This election must be made by filing your

Treatment for Losses on Deposits in

Qualified disaster losses. Qualified

return or amended return for the earlier year,

Insolvent or Bankrupt Financial

Institutions,

disaster losses are personal casualty losses

and claiming your disaster loss on it, on or

later.

sustained as a result of a federally declared

before the date that is six months after the

disaster that occurred in 2016, as well as

If you aren't sure whether part of your

regular due date for filing your original return

from Hurricanes Harvey, Irma, and Maria

casualty or theft loss will be reimbursed,

(without extensions) for the disaster year.

(described below). The special relief for

don't deduct that part until the tax year when

You can make the election to deduct a

these qualified disaster losses is described

you become reasonably certain that it won't

disaster loss sustained in 2017 on your

in the Specific Instructions for lines 11 and

be reimbursed.

amended 2016 return on or before October

15, later.

If you are reimbursed for a loss you

15, 2018.

You can deduct qualified disaster losses

deducted in an earlier year, include the

If you previously obtained a 6-month

for both regular and AMT purposes without

reimbursement in your income in the year

extension of time to file your original 2016

itemizing other deductions on Schedule A.

you received it, but only to the extent the

return and you are an affected taxpayer as a

Moreover, your net casualty loss from these

deduction reduced your tax in an earlier

result of Hurricane Harvey, Irma, or Maria, or

qualified disasters does not need to exceed

year.

the California wildfires, you have until

10% of your adjusted gross income to qualify

January 31, 2018, to timely file and make this

See Lessee's loss in Pub. 547 for special

for the deduction, but the $100 limit per

election, except that taxpayers affected by

rules on when to deduct losses from

casualty is increased to $500.

Hurricane Maria in Puerto Rico or the U.S.

casualties and thefts to leased property.

Qualified disaster losses from

Virgin Islands have until June 29, 2018, to do

Disaster Losses

Hurricanes Harvey, Irma, and Maria. A

so.

qualified disaster loss from Hurricane

If you make this election for a disaster

A disaster loss is a loss that occurred in an

Harvey, Irma, or Maria is a personal casualty

loss sustained in 2017, include a statement

area determined by the President of the

loss caused by:

with your 2016 original or amended return

United States to warrant federal disaster

Hurricane Harvey in the Hurricane Harvey

saying that you are making this election.

assistance and that is attributable to a

disaster area after August 22, 2017,

Specify the name (or give a description) of

federally declared disaster. It includes a

Hurricane Irma in the Hurricane Irma

the disaster, the date(s) of the disaster, and

major disaster or emergency declaration.

disaster area after September 3, 2017,

the city or town, county or parish, state, and

Hurricane Maria in the Hurricane Maria

For a list of federally declared

zip code in which the damaged or destroyed

disaster area after September 15, 2017.

disasters and disaster areas, see

property was located. The statement can be

TIP

FEMA.gov/Disasters.

These special computational rules do not

made on the return (for example, on line 1 or

apply to losses sustained as a result of

19 of Form 4684) or on an attachment filed

To determine the amount to deduct for a

Tropical Storm Harvey in Louisiana,

with the return. See the 2016 Instructions for

disaster loss, you must take into account as

Hurricane Irma in South Carolina, or the

Form 4684 for more detailed information on

reimbursements any benefits you received or

California wildfires. For these areas, the

how to claim these losses on your original or

which you have a reasonable possibility of

regular casualty loss rules apply.

amended 2016 return.

receiving from federal or state programs to

In addition, the federal disaster

For disaster years beginning in 2018, this

restore your property.

declaration must have been made before

election may be made by completing Part I of

Disaster year. The disaster year is the tax

September 21, 2017.

Section D on the 2017 Form 4684 and

year in which you sustained the loss

attaching it to your return or amended return

At the time these instructions went to

attributable to a federally declared disaster.

for 2017 that claims the disaster loss

print, Congress was considering

Generally, a disaster loss is sustained in the

deduction on or before the date that is six

additional legislation that could

year the disaster occurred. However, a

CAUTION

months after the regular due date for filing

expand the definition of “qualified disaster

disaster loss may also be sustained in a year

your original return (without extensions) for

losses.” However, at the time these

after the disaster occurred. For example, if a

the disaster year. For calendar year

instructions went to print, losses caused by

claim for reimbursement exists for which

taxpayers, this deadline is October 15, 2019.

Tropical Storm Harvey in Louisiana,

there is a reasonable prospect of recovery,

See

Section D—Election To Deduct

Hurricane Irma in South Carolina, or the

no part of the loss for which reimbursement

Federally Declared Disaster Loss in

California wildfires were not considered

may be received is sustained until it can be

Preceding Tax

Year, later.

“qualified disaster losses.” If you have losses

ascertained with reasonable certainty

caused by Tropical Storm Harvey in

Revoking a prior election to deduct

whether you will be reimbursed.

Louisiana, Hurricane Irma in South Carolina,

loss in the preceding year. You can

or the California wildfires (after October 7,

Example. In December 2017, your car

revoke this election by filing an amended

2017, in the California wildfire disaster area),

was destroyed in severe flooding that

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Instructions For Form 4684 - Casualties And Thefts - 2017 Page 2

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