Instructions For Form 4684 - Casualties And Thefts

adjusted (increased) for the effects of any

4684, do not enter an amount on line 5 or

Complete the rest of Schedule A either

general market decline that may occur at the

line 6 for each property. Instead, enter the

by:

same time as the casualty or theft. For

decrease in the fair market value determined

Itemizing other deductions as usual, or

example, the value of all nearby property

in the relevant safe harbor method on line 7.

Including the amount of your standard

may become depressed because it is in an

deduction (see the Instructions for Form

area where such occurrences are

1040, line 40, or the Instructions for Form

Line 11

commonplace. This general decline in

1040NR, line 38) on Schedule A, line 28

If you have a

qualified disaster

loss, add the

market value isn't part of the property's

(Schedule A, line 14 for Form 1040NR filers),

amounts on line 4 of all Forms 4684.

decrease in FMV as a result of the casualty

as “Standard Deduction Claimed With

Compare the sum with the amount on

or theft.

Qualified Disaster Loss.” If you are also filing

line 10. If the amount on line 10 is larger,

Form 6251, Alternative Minimum Tax for

enter $500 on line 11 of the Form 4684

Individuals, enter on line 1 of that form the

Replacement cost or the cost of repairs

reporting the qualified disaster losses. If the

amount from Form 1040, line 41, even

isn't necessarily FMV. However, you may be

amount on line 10 is smaller, enter $100 and

though that amount has been reduced by the

able to use the cost of repairs to the

complete the remainder of the form without

standard deduction. Include the amount of

damaged property as evidence of loss in

applying the special rules for qualified

the standard deduction (before it was

value if:

disaster losses.

increased by any net disaster loss) on

The repairs are actually made,

line 27.

The repairs are necessary to restore the

Note. These special computational rules do

Don’t complete the rest of this section if all

property to the condition it was in

not apply to losses sustained as a result of

your personal casualty and theft losses are

immediately before the casualty,

Tropical Storm Harvey in Louisiana,

qualified disaster losses are subject to the

The amount spent for repairs isn't

Hurricane Irma in South Carolina, or the

$500 reduction.

excessive,

California wildfires.

The repairs only correct the damage

If line 14 is less than line 13 and you have

caused by the casualty, and

no qualified disaster losses subject to the

Line 15

The value of the property after the repairs

$500 reduction on line 11 of the Form 4684,

isn't, as a result of the repairs, more than the

enter -0- and go to line 16 and complete the

Note. You will complete line 15 differently

value of the property immediately before the

rest of the section.

depending on whether you have a net gain or

casualty.

loss and whether you have a

qualified

Line 17

disaster

loss.

To figure a casualty loss to real estate not

Estates and trusts figure AGI in the same

Net gain. If line 14 is more than line 13, you

used in a trade, business, or for

have a net gain. Report the gain as follows:

way as individuals, except that the costs of

income-producing purposes, measure the

administration are allowed in figuring AGI.

Combine your short-term gains with your

decrease in value of the property as a whole.

short-term losses and include the net

All improvements, such as buildings, trees,

Section B—Business and

short-term gain or (loss) on Schedule D

and shrubs, are considered together as one

Income-Producing Property

(Form 1040), line 4. Estates and trusts

item. Figure the loss separately for other

include this amount on Schedule D (Form

items. For example, figure the loss

Use a separate column of Part I, lines 20

1041), line 4.

separately for each piece of furniture.

through 27, to show each item lost or

Combine your long-term gains with your

damaged from a single casualty or theft

Safe harbor methods for determining

long-term losses and include the net

described on line 19. If more than four items

casualty and theft losses. See Revenue

long-term gain or (loss) on Schedule D

were lost or damaged, use additional sheets

Procedure 2018-08, 2018-2 I.R.B. 286,

(Form 1040), line 11. Estates and trusts

following the format of Part I, lines 19 through

available at IRS.gov/irb/2018-02_IRB, for

include this amount on Schedule D (Form

27.

safe harbor methods that you may use in

1041), line 11.

determining the amount of your casualty and

Use a separate Form 4684, Section B,

The holding period for long-term gains

theft losses for your home and personal

Part I, for each casualty or theft involving

and losses is more than 1 year. For

belongings. See Revenue Procedure

property used in a trade or business or for

short-term gains and losses, it is 1 year or

2018-09, 2018-2 I.R.B 290, available at

income-producing purposes. Use one

less. To figure the holding period, begin

IRS.gov/irb/2018-02_IRB, for the cost

Section B, Part II, to combine all Sections B,

counting on the day after you received the

indexes safe harbor method that you may

Part I.

property and include the day the casualty or

use to determine the amount of loss to your

theft occurred.

For details on the treatment of casualties

home as a result of Hurricane and Tropical

or thefts to business or income-producing

Generally, if you inherit property, you are

Storm Harvey, Hurricane Irma, and

property, including rules on the loss of

considered to have held the property for

Hurricane Maria. The cost indexes provide

inventory through casualty or theft, see

longer than 1 year, regardless of how long

tables with cost per square foot for Texas,

Figuring a Loss in Pub. 547.

you actually held it. If you inherited property

Louisiana, Florida, Georgia, South Carolina,

from someone who died in 2010 and the

Puerto Rico, and the U.S. Virgin Islands.

Home Used for Business or

executor made the election to file Form

Safe harbor reporting requirements

8939, refer to the information provided by the

Rented Out

for Form 4684. If you use one of the safe

executor or see Pub. 4895, available at

harbor methods provided in Revenue

If you had a casualty or theft loss involving a

IRS.gov/pub/irs-prior/p4895--2011.pdf

Procedure 2018-08, you must attach a

home you used for business or rented out,

determine your holding period.

statement to Form 4684 stating that you

your deductible loss may be limited. First,

Net loss. If line 14 is less than line 13 and

used Revenue Procedure 2018-08 to

complete Form 4684, Section B, lines 19

you have qualified disaster losses subject to

determine the amount of your casualty loss.

through 26. If the loss involved a home used

the $500 reduction on line 11 on any Form(s)

Include the specific safe harbor method

for a business for which you are filing

4684:

used. If you use the cost indexes safe harbor

Schedule C (Form 1040), Profit or Loss From

method provided in Revenue Procedure

Subtract line 14 from line 12 of the Form

Business, figure your deductible casualty or

2018-09 to calculate hurricane-related

4684 listing those qualified disaster losses.

theft loss on Form 8829, Expenses for

losses, you must attach a statement to Form

The difference is your net qualified disaster

Business Use of Your Home (if you are using

4684 stating that you used Revenue

loss. Enter this amount on line 15 and on

Form 8829). Enter on Form 4684, line 27, the

Procedure 2018-09 to determine the amount

Schedule A, line 28 (Schedule A, line 14 for

deductible loss from Form 8829, line 34, and

of your casualty loss. Include the specific

Form 1040NR filers), as “Net Qualified

“See Form 8829” above line 27. For a home

table number used. When completing Form

Disaster Loss.”

you rented out or used for a business for

-5-

Instructions For Form 4684 - Casualties And Thefts - 2016 Page 5

Related Articles

Related forms

Related Categories